Question

Kevin bought 200 shares of Intel stock on January 1, 2019, for $50 per share, with a brokerage fee of $100. Then, Kevin sells all 200 shares for $75 per share on December 12, 2019. The brokerage fee on the sale was $150. What is the amount of the gain/loss Kevin must report on his 2019 tax return?

Answer 1

$4,750

Step-by-step explanation:

The net gain or net loss will be the difference between the total purchase price and the net realized from the sales.

The total amount spent on buying

= total share price plus brokerage

=($50 x 200) + 100

=10,000 +100

=10,100

The net amount realized from the sale

=(200 x 75)-150

=15,000 -150

=$14, 850

net gain or loss

=$14, 850 - $10,100

=$4,750