When does the holding period for the remaining shares begin

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Reference no: EM131998544

Dennis sells short 375 shares of ARC stock at $304 per share on January 15, 2017. He buys 750 shares of ARC stock on April 1, 2017, at $380 per share. On May 2, 2017, he closes the short sale by delivering 375 of the shares purchased on April 1. Please show work.

a. What are the amount and nature of the loss upon closing the short sale?

Dennis has loss in the amount of $________

b. When does the holding period for the remaining shares begin?

The holding period for the remaining shares begins on __________ .

c. If Dennis sells (at $418 per share) the remaining 375 shares on January 20, 2018, what will be the nature of his gain or loss?

Dennis has in the amount of $___________.

Reference no: EM131998544

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