Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Kevin bought 270 shares of Intel stock on January 1, 2022, for $78 per share, with a brokerage fee of $170. Then, Kevin sells all 270 shares for $89 per share on December 12, 2022. The brokerage fee on the sale was $220. What is the amount of the gain/loss Kevin must report on his 2022 tax return?

Sagot :

Learnology

Answer:

⬇⬇⬇⬇⬇⬇

Step-by-step explanation:

Absolutely, I can help you calculate Kevin's capital gain on the sale of Intel stock.

Here's a breakdown of the transaction:

Purchase

Price per share: $78

Number of shares: 270

Brokerage fee: $170

Sale

Price per share: $89

Number of shares: 270 (all shares purchased were sold)

Brokerage fee: $220

Calculating the gain/loss:

Total purchase cost:

(Price per share * Number of shares) + Brokerage fee

($78/share * 270 shares) + $170 = $21,590

Total sale proceeds:

(Price per share * Number of shares) - Brokerage fee

($89/share * 270 shares) - $220 = $24,330

Gain/loss:

Total sale proceeds - Total purchase cost

$24,330 - $21,590 = $2,740

Answer: Based on the calculations, Kevin earned a capital gain of $2,740 on the sale of Intel stock, which he must report on his 2022 tax return.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.