How much gainor loss will george have to recognize

Reference no: EM13906133

George bought the following amounts of Stock A over the years:

	Date Purchased	Number of Shares	Adjusted Basis
Stock A	11/21/1989	1,000	$24,000
Stock A	3/18/1995	500	9,000
Stock A	5/22/2004	750	27,000

On October 12, 2015, he sold 1,200 of his shares of Stock A for $38 per share.

a) How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?

b) How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from the 5/22/2004 purchase and 450 shares from the 11/21/1989 purchase?

Reference no: EM13906133

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