Question

This year Barney purchased 380 shares of Bell common stock for $28.80 per share. At year-end the Bell shares were only worth $3.60 per share. What amount can Barney deduct as a loss this year?

Answer 1

Not entitled

Step-by-step explanation:

Given that

Number of shares purchased = 380 shares

Par value of share = $28.80 per share

Worth per share = $3.60 per share

By considering the above information, the Barney is not eligible for the deduction as there is no share is sold i.e only purchase value of the share and the worth per share is given.

So, he is not entitled to any loss this year