During the year, Eric had the four property transactionssummarized below. Eric i
ID: 2444598 • Letter: D
Question
During the year, Eric had the four property transactionssummarized below. Eric is a collector of antique automobiles andoccasionally sells one to get funds to buy another. What are theamount and nature of the gain or loss from each of thesetransactions? Property DateAcquired DateSold AdjustedBasis SalesPrice Antiquetruck 06/18/98 05/23/08 $47,000 $35,000 Blue Growth Fund 12/23/00 11/22/08 12,000 23,000 (100 shares) OrangeBonds 02/12/01 04/11/08 34,000 42,000* Greenstock 02/14/08 11/23/08 13,000 11,000 (100 shares) *The sales price included $750 of accrued interest. During the year, Eric had the four property transactionssummarized below. Eric is a collector of antique automobiles andoccasionally sells one to get funds to buy another. What are theamount and nature of the gain or loss from each of thesetransactions? Property DateAcquired DateSold AdjustedBasis SalesPrice Antiquetruck 06/18/98 05/23/08 $47,000 $35,000 Blue Growth Fund 12/23/00 11/22/08 12,000 23,000 (100 shares) OrangeBonds 02/12/01 04/11/08 34,000 42,000* Greenstock 02/14/08 11/23/08 13,000 11,000 (100 shares) *The sales price included $750 of accrued interest.Explanation / Answer
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$41250*
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Nature of Assets Adjusted Sales Gain/Loss Nature Basis Price1
Antique Truck Long-term assets $47,000 $35,000 ($12,000) Long-term capital loss2
Blue growth Fund Long-term assets $12,000 $23,000 $11,000 Long-term capital gain3
Orange Bonds Long-term assets $34,000$41250*
$7,250 Long-term capital gain4
Green Stock Short- term assets $13,000 $11,000 ($2,000) Short-term capital loss $41250* = $42,000 - $750Related Questions
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