Mike purchased stock in MDH Corporation 5 years ago for $15,500. This year he sold it for $12,800 and then paid a $250 sales commission to his broker. He had no other capital gains or losses during the year.
a. What is Mike's amount realized?
b. What is Mike's adjusted basis?
c. What is Mike's realized gain or loss?
d. What is Mike's recognized gain or loss?
e. How much of the gain or loss can Mike report in his tax return?

Question

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The Answer of Mike purchased stock in MDH Corporation 5 years ago for $15,500. This year he sold it for $12,800 and then paid a $250 sales commission to his broker. He had no other capital gains or losses during the year.
a. What is Mike's amount realized?
b. What is Mike's adjusted basis?
c. What is Mike's realized gain or loss?
d. What is Mike's recognized gain or loss?
e. How much of the gain or loss can Mike report in his tax return?

Mike Purchased Stock in MDH Corporation 5 Years Ago for $15,500