During 2001,Charles purchased 1,000 shares of Ryan Corporation stock for $12,000.On February 22,2013,he sells all the shares for $9,000.On March 15,2013,he repurchases 1,000 shares of Ryan for $8,000 and holds them until May 29,2013,when he sells them for $10,000.What is Charles' recognized gain or loss on the May 29,2013,sale?

Question

Quizplus · Accepted Answer

Charles sold his original shares in February 2013 for $9,000, resulting in a loss of $3,000 ($9,000 - $12,000). When he repurchased the shares in March 2013 for $8,000, this did not change the amount of his recognized loss. When he sells the repurchased shares in May 2013 for $10,000, he recognizes a gain of $2,000 ($10,000 - $8,000). However, since he had previously recognized a loss of $3,000, his overall recognized gain or loss is a loss of $1,000 ($2,000 - $3,000). Therefore, the correct answer is A) $1,000 loss.

During 2001,Charles Purchased 1,000 Shares of Ryan Corporation Stock for $12,000.On