Reiko buys 200 shares of Saratoga Corporation common stock on December 10,2016,for $2,000.He buys an additional 200 shares for $1,800 on December 23,2017.On December 28,2017,Reiko sells 100 of the first 200 shares for $800.He sells the remaining 300 shares for $2,500 on November 15,2018.What is(are)the amount(s)and the year of recognition of losses that Reiko can recognize?

2017 2018

Question

Reiko buys 200 shares of Saratoga Corporation common stock on December 10,2016,for $2,000.He buys an additional 200 shares for $1,800 on December 23,2017.On December 28,2017,Reiko sells 100 of the first 200 shares for $800.He sells the remaining 300 shares for $2,500 on November 15,2018.What is(are)the amount(s)and the year of recognition of losses that Reiko can recognize?
​
2017 2018

Quizplus · Accepted Answer

Reiko sells 100 shares from the first batch in 2017 for $800, which is a $200 gain ($800 - $600 cost basis). In 2018, he sells the remaining 300 shares for $2,500. The cost basis for these shares is $3,000 ($1,200 for the remaining 100 shares from the first batch and $1,800 for the second batch), resulting in a $500 loss ($2,500 - $3,000).

Reiko Buys 200 Shares of Saratoga Corporation Common Stock on December