Keisha sold 200 shares of Chic-Chic stock in 2016 for $22,500 and received a 1099-B to record the sale of the shares.Keisha's investment portfolio includes the following purchases of Chic-Chic's stock: 2007 100 shares at $100 per share
2008 50 shares at $110 per share
2009 125 shares at $130 per share
2012 75 shares at $125 per share
Assuming Keisha does not identify which shares she sold,she will recognize

Question

Quizplus · Accepted Answer

Keisha's cost basis using the FIFO method (first-in, first-out) is calculated as follows: 100 shares from 2007 at $100 each = $10,000, and 100 shares from 2008 at $110 each = $11,000. Total cost basis = $21,000. Sale price = $22,500. Gain = $22,500 - $21,000 = $1,500 gain.

Keisha Sold 200 Shares of Chic-Chic Stock in 2016 for $22,500