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John bought 1,000 shares of Intel stock on October 18, 2010 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2013, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.
a. What is John's adjusted basis in the 1,000 shares of Intel stock?b. What amount does John realize when he sells the 1,000 shares?c. What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?
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