I need help with this problem Problem 13-52 (LO. 1, 2, 3) Karen Samuels (Social

Question

I need help with this problem

Problem 13-52 (LO. 1, 2, 3) Karen Samuels (Social Security number 123-45-6789) makes the following purchases and sales of stock: Number Price per Share Transaction Purchase Purchase Purchase Sale Purchasee Sale Sale Sale Date of Shares Company 1-1-2015 6-1-2015 11-1-2015 12-3-2015 3-1-2016 8-1-2016 1-1-2017 2-1-2017 300 150 60 200 120 90 150 75 MDG GRU MDG MDG GRU GRU MDG GRU $75 300 70 80 375 330 90 500 Assuming that Karen is unable to identify the particular lots that are sold with the original purchase, what is the recognized gain or loss on each type of stock as of the following dates If an amount is zero, enter "O a. For the period from 1-1-2015 to 7-1-2015 There is a recognized gain X of

Explanation / Answer

A. No sales have occurred.

B. 12-31-2015 : MDG Stock basis(200*75) = $15000; (16000(amount realised) - 15000 (basis))= $1000 realised gain for MDG Stock.

C. 12-31-2016: GRU Stock basis(90*300) = 27000$; (29700 ( amount realized)- 27000 ( Basis))= $2700 realised gain on GRU.

D. 2-1-17. Second MDG Sale : $13500(amount realized) - $11000(basis)- 2500 realized gain on MDG Stock.

(100*75$) $7500

(50 *70) $3500

Basis (7500 +3500) $11000

Second GRU Sale : $37500(amount realized)- $23625(basis)= $13875 gain on GRU Stock.

(60*$300).................................$18000

(50*$375)...............................$5625

Basis (18000+5625)........................$23625

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