Uses the specific identification method

Assignment Help Management Theories

Reference no: EM131089537

Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis

7/10/2005 400 $ 12,000
4/20/2006 300 10,750
1/29/2007 500 12,230
11/02/2009 250 7,300

If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2015, what is her capital gain or loss in each of the following assumptions? (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.)

a. She uses the FIFO method.

b. She uses the specific identification method and she wants to minimize her current year capital gain.

Reference no: EM131089537

Questions Cloud

How much will sarah have to invest today : How much will Sarah have to invest today? If she earned an annual return of 18%, how soon could she then retire?

What is the proportion for smoker for men : In a survey to identify of risk factors for heart disease among men and women were asked about if they ever smoke. Of the 430 men, 116 said they smoke. Of the 380 women, 73 said they smoke. What is the proportion for smoker for men

Write an essay examining a cultural conflict : What conflict have you chosen and what are your initial impressions of the economic, cultural, political, and territorial causes of the conflict?

What most significant problem with matrix project structure : What is the term used to describe the longest path time through a CPM network? In using modern project management, what does the "rule of urgency" NOT create?

Uses the specific identification method : Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis

Return funds issued by an increment factor : Explain why mortgage rates have a given interest fee hence all borrowers have to return funds issued by an increment factor?

Enters into a contract with leah : 1. Lukas is 13 years old. He enters into a contract with Leah (an adult) to purchase of a guitar. Leah then decides that she does not wish to sell the guitar and alleges that no valid contract exists as Lukas is too young to be able to enter into ..

What are your initial impressions of the economic : What conflict have you chosen - what are your initial impressions of the economic, cultural, political, and territorial causes of the conflict?

Cost minimizing combination : If output is produced according to Q = 5Lk (L is the quantity of labor and k is the quantity of capital), the price of K is $12, and the price of L is $6, then the cost minimizing combination of K and L capable of producing 4,000 units of output i..

User Account

All Pages