Ask Question
4 December, 21:11

Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2018, for $300,000. On December 12, 2018, Kevin purchases an additional 750 shares of Bluebird stock for $210,000. According to market quotations, Bluebird stock is selling for $285 per share on 12/31/18. Kevin sells 500 shares of Bluebird stock on March 1, 2019, for $162,500. What is the adjusted basis of Kevin?

+1
Answers (1)
  1. 4 December, 21:12
    0
    Answer and Explanation:

    Purchases:

    1,000 shares * $300 per share = $300,000

    750 shares * $280 per share = $210,000

    a. 300,000 + 210,000 = 510,000

    answer: $510,000

    b.

    162,500 - 500*280 = $22,500

    answer: $22,500

    c.

    if he cannot identify the shares sold, then they are sold on a first in first out basis. So they would be from the shares bough October 3.

    162,500 - 500*300 = $12,500

    answer: $12,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2018, for $300,000. On December 12, 2018, Kevin purchases an ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers