Reference no: EM131268073
Lucy owns 150 shares of Apex Corp., a publicly traded company, which Lucy purchased on January 1, Year 1, for $15,000. On January 1, Year 3, Apex declared a 2- for-1 stock split when the fair market value (FMV) of the stock was $140 per share. Immediately following the split, the FMV of Apex stock was $65 per share. On February 1, Year 3, Lucy had her broker sell 120 shares of the Apex stock she received in the split when the FMV of the stock was $70 per share. What amount should Lucy recognize as long-term capital gain income on her Form 1040, U.S. Individual Income Tax Return, for Year 3?
|
Uses weighted-average process-costing system
: Willingham uses a weighted-average process-costing system for its single product, which consists of Material X and Material Y. X and Y are introduced to the product as follows: The company completed 40,000 units during the period, and had an ending w..
|
|
What was the amount of pension plan assets at year-end
: Pension plan assets were $320 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, retiree benefits paid by the trustee were $14 million and cash invested in the pension fund was $18 million. What was the am..
|
|
Uses normal cost system-direct manufacturing labor costs
: Kelsh Company had the following budgeted and actual costs for 2015: Assume Kelsh Company uses a normal cost system. The company allocates manufacturing overhead costs using direct manufacturing labor costs. Assume Kelsh Company uses a normal cost sys..
|
|
Recognized gain and basis in his new investment real estate
: Baxley owned a parcel of investment real estate that had an adjusted basis of $35,000 and a fair market value of $50,000. During 2015, Baxley exchanged his investment real estate for the items of property listed below. Land to be held for investment ..
|
|
Recognize as long-term capital gain income
: Lucy owns 150 shares of Apex Corp., a publicly traded company, which Lucy purchased on January 1, Year 1, for $15,000. On January 1, Year 3, Apex declared a 2- for-1 stock split when the fair market value (FMV) of the stock was $140 per share. What a..
|
|
What is the proper treatment for transactions
: On March 1 of the previous year, a parent sold stock with a cost of $9,000 to her child, for $6,000, its fair market value. On September 30 of the current year, the child sold the same stock for $7,500 to Jones, who is unrelated to the parent and chi..
|
|
Deduct on current year taxes with respect to each activity
: In the current tax year, Boris earned $120,000 from his job as a master plumber. In addition, he received $40,000 of income from Activity A, and lost $30,000, and 25,000 from Activities B and C respectively. Activities A, B, and C are passive activit..
|
|
Current year after all threshold limitations are applied
: Alonzo, a single taxpayer, has adjusted gross income of $30,000 in the current year. During the year, a hurricane causes $4,100 damage to Alonzo’s personal use car on which he has no insurance. Alonzo purchased the car for $20,000. Immediately before..
|
|
Adjusted gross income-taxable income and tax liability
: Wendy is a single taxpayer, whose salary was $62,000 in 2015. In that year, she also suffered a $6,000 short-term capital loss. Her itemized deductions for the year totaled $5,000. What are Wendy’s 2015 (a) adjusted gross income; (b) taxable income; ..
|