Reiko buys 200 shares of Saratoga Corporation common stock on December 10, 2017, for $2,000. He buys an additional 200 shares for $1,800 on December 23, 2018. On December 28, 2018, Reiko sells 100 of the first 200 shares for $800. He sells the remaining 300 shares for $2,500 on November 15, 2019. What is(are) the amount(s) and the year of recognition of losses that Reiko can recognize?

2018 2019

Question

Reiko buys 200 shares of Saratoga Corporation common stock on December 10, 2017, for $2,000. He buys an additional 200 shares for $1,800 on December 23, 2018. On December 28, 2018, Reiko sells 100 of the first 200 shares for $800. He sells the remaining 300 shares for $2,500 on November 15, 2019. What is(are) the amount(s) and the year of recognition of losses that Reiko can recognize?
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2018 2019

Quizplus · Accepted Answer

Reiko sells 100 shares from the first batch in 2018 for $800, which he bought for $1,000, resulting in no loss. In 2019, he sells the remaining 300 shares for $2,500. The cost basis for these shares is $3,000 ($1,000 for the remaining 100 shares from the first batch and $1,800 for the 200 shares from the second batch), resulting in a $500 loss.

Reiko Buys 200 Shares of Saratoga Corporation Common Stock on December