Question

Problem 7-53 (LO 7-2) [The following information applies to the questions displayed below.) Christina, who is single, purchased 280 shares of Apple Inc. stock several years ago for $14,840. During her year-end tax planning, she decided to sell 140 shares of Apple for $6,720 on December 30. However, two weeks later, Apple introduced its latest iPhone, and she decided that she should buy the 140 shares (cost of $7,000) of Apple back before prices skyrocket. (Leave no answers blank. Enter zero if applicable.) Problem 7-53 Part-a a. What is Christina's deductible loss on the sale of 140 shares? What is her basis in the 140 new shares? Deductible loss Basis

Answer 1

Anwer Page no period of 3o christina hal şold 140 shores of Apple on Dec 30 and purchakel 140 shares of Apple , Two weeks later both transaction are with in a days, and the share is same lidentical This is wash sale. The loss on şale of shares is not allowed al deductible loss. Hence, the Şame is added to the Cost of répurcholed newly Purchased Shares a) Cost of 140 shares 14840 7420 Lesa: Sald price $6720 $700 Howlever, this loss is not deductible loss. It has two parts. Deductible loss on sale of 140 share o and the bales for new 140 shared - cast + less = 7000 + 700 =$4700 LOSS