2. Michonne makes the following stock purchases: Date Stock Purchase (FMV)...
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Accounting
2. Michonne makes the following stock purchases:
Date Stock Purchase (FMV)
1/3/X1 10 shares Apple $175K
1/3/X1 10 shares Berkshire Hathaway $160K
2/3/X1 10 shares Berkshire Hathaway $175K
6/28/X1 75 shares Kmart $100K
12/31/X1 15 shares Apple $225K
3/8/X2 25 shares Apple $275K
4/3/X2 10 shares Apple $175K
6/2/X2 75 shares Kmart $140K
12/3/X2 15 shares Apple $275K
3/8/X3 25 shares Apple $300K
a. On June 6, 20X3, Michonne calls her broker and tells him to sell 50 share of Apple stock, which the broker sells for $750K. What is Michonnes recognized gain or loss, if any, on the 6/6/X3 sale of Apple stock?
b.What would your answer be if on June 6, 20X3, Michonne calls her broker and tells him to sell 50 share of Apple stock purchased on 1/3/X1, 12/31/X1, 4/3/X2 and 12/3/X2, which the broker sells for $750K? What is Michonnes recognized gain or loss, if any, on the 6/6/X3 sale of Apple stock?
c.On February 1, 20X1, Michonne sales 10 shares of Berkshire Hathaway for $150K. What would Michonnes recognized gain/loss, if any, be on the sale?
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