Simon purchased 1,000 shares of ABC stock for $8,000 on April 4.On March 1 he had sold 1,500 shares of ABC stock for $9,000 that he had purchased three months earlier for $15,000.What is Simon's realized and recognized loss, respectively, on the March 1 stock sale?
A)$6,000, $6000
B)$6,000, 0
C)$6,000, $4,000
D)$4,000, $6,000

Question

Quizplus · Accepted Answer

Simon's realized loss is calculated by subtracting the sale proceeds ($9,000) from the cost basis of the stock ($15,000), which equals a $6,000 loss. Since there are no details suggesting that the loss cannot be recognized (e.g., wash sale rules not triggered by the information given), the recognized loss is also $6,000.

Simon Purchased 1,000 Shares of ABC Stock for $8,000 on April