Over the past 20 years,Alfred has purchased 380 shares of Green,Inc.,common stock.His first purchase was in 1992 when he acquired 30 shares for $20 a share.In 1997,Alfred bought 150 shares at $10 a share.In 2012,Alfred acquired 200 shares at $50 a share.Alfred intends to sell 125 shares at $60 per share in the current year (2013).If Alfred's objective is to minimize gain,what is his recognized gain?

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To minimize gain, Alfred should sell the shares with the highest cost basis first. He should sell 125 shares from the 200 shares purchased in 2012 at $50 each. The cost basis for these 125 shares is $50 per share, totaling $6,250. Selling them at $60 per share gives him $7,500. The recognized gain is $7,500 - $6,250 = $1,250.

Over the Past 20 Years,Alfred Has Purchased 380 Shares of Green,Inc.,common