Question

Three years ago, Adrian purchased 430 shares of stock in X Corp. for $70,950. On December 30 of year 4, Adrian sells the 430 shares for $64,070. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.)

a. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?

Answer 1

Adrian can deduct a loss of $6,880 on her year 4 tax return.

Step-by-step explanation:

Loss on Stock Sale

To calculate the loss that Adrian can deduct on her year 4 tax return, we need to find the difference between the purchase price and the sale price of the stock. In this case, Adrian purchased 430 shares for $70,950 three years ago and sold them for $64,070 in year 4. The loss can be calculated as follows:

Loss = Purchase Price - Sale Price

Loss = $70,950 - $64,070 = $-6,880

Therefore, Adrian is able to deduct a loss of $6,880 on her year 4 tax return.

Answer 2

6,880

Step-by-step explanation: