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    Recognized Income Tax Gain or Loss

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    On April 18, 2010, Jane Juniper purchased 30 shares of Bryan Corp. stock for $210, and on September 29, 2010, she purchased 90 additional shares for $900. On November 28, 2010 she sold 48 shares, which could not be specifically identified, for $576 and on December 8, 2010, she sold another 25 shares for $188. What is recognized gain or loss?

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    Solution Preview

    When shares are not specifically identified, the First-In, First-Out rule (FIFO) applies to stock sales. Thus, Jane's transactions follow:

    4/18/10 Bought 30 shares for $210. Her cost is ...

    Solution Summary

    This solution discusses how to determine the gain or loss on sale of stock for income tax purposes and illustrates the computation.