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Christina, who is single, purchased 140 shares of Apple Incorporated stock several years ago for $8,400. During her year-
end tax planning, she decided to sell 70 shares of Apple for $3,850 on December 30. However, two weeks later, Apple
introduced its latest iPhone, and she decided that she should buy the 70 shares (cost of $3.990) of Apple back before
prices skyrocket (Leave no answers blank. Enter zero if applicable.)
. What is Christina's deductible loss on the sale of 70 shares? What is her basis in the 70 new shares?

Respuesta :

abiolataiwo2015

Christina's deductible loss on the sale of 70 shares is $0 and  her basis in the 70 new shares is $4,340.

Deductible loss

a. Her deductible loss will be $0 because no deductible loss.

b. Basis in the new shares

Loss=3,850-(8,400×70/140)

Loss=3,850-(8,400×0.5)

Loss=3,850-4,200

Loss=350

New shares basis =350+ 3,990

New shares basis =350+3,990

New shares basis =$4,340

Inconclusion Christina's deductible loss on the sale of 70 shares is $0 and her basis in the 70 new shares is $4,340.

Learn more about  deductible loss here:https://brainly.com/question/2231991

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