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24 August, 21:44

John bought 1,000 shares of intel stock on october 18, 2013, for $30 per share plus a $750 commission he paid to his broker. on december 12, 2016, he sells the shares for $42.50 per share. he also incurs a $1,000 fee for this transaction.

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  1. 24 August, 22:07
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    I don't know what the question is but I'll try to give the figures based on the transaction.

    October 18, 2013 : Upon purchase of shares:

    1,000 shares x 30 per share = 30,000

    30,000 + 750 commission = 30,750 adjusted basis

    December 12, 2016 Upon disposal of shares:

    1,000 shares x 42.50 per share = 42,500

    42,500 - 1,000 transaction fee = 41,500 realized amount

    Gain on sale:

    41,500 - 30,750 = 10,750 John's gain upon the sale of the shares.

    The gain on sale is identified as long-term capital gain. This is because John held on to his shares for more than a year before selling. He had his shares from October 2013 to December 2016, so more than 3 years.
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