Question

Andrew acquires 2,000 shares of Eagle Corporation stock for $100,000 on March 31, 2014. On January 1, 2018, he sells 125 shares for $5,000. On January 22, 2018, he purchases 135 shares of Eagle Corporation stock for $6,075. When does Andrew's holding period begin for the 135 sharesa. January 22, 2014.b. January 1, 2014.c.March 31, 2010.d. March 31, 2010, for 125 shares and January 22, 2014, for 10 shares.e. None of these.

Answer 1

D) March 31, 2014, for 125 shares and January 22, 2018, for 10 shares.

Step-by-step explanation:

Since Andrew sold 125 shares on January 1, 2018 and then bought 135 shares on January 22, 2018, the wash-rule applies to 125 shares. That means that the holding period for 125 shares is March 31, 2014.

The remaining 10 shares' holding period starts on January 22, 2018.