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During the year, Eugene had the four property transactions summarized below. Eugene is a collector of antique glassware and occasionally sells a piece to get funds to buy another. Property Date Acquired Date Sold Adjusted Basis Sales Price Antique vase 06/18/09 05/23/20 $37,000 $42,000 Blue Growth Fund 12/23/11 11/22/20 22,000 38,000 (100 shares) Orange bonds 02/12/12 04/11/20 34,000 42,000* Green stock 02/14/20 11/23/20 11,000 13,000 (100 shares) *The sales price included $750 of accrued interest. a. What are the amount and nature of the gain or loss from each of these transactions

Answer :

anthougo

Answer:

Eugene

Property                

                                   Gain      Nature of Gain/Loss

Antique vase           $5,000    Operating profit (normal business)

Blue Growth Fund   16,000     Long-term capital gain

(100 shares)

Orange bonds          8,000      Long-term capital gain

Green stock              2,000     Short-term capital gain

Explanation:

a) Data and Calculations:

Property            Date Acquired  Date Sold   Adjusted   Sales    

                                                                          Basis      Price       Gain

Antique vase        06/18/09       05/23/20   $37,000    $42,000  $5,000

Blue Growth Fund 12/23/11         11/22/20     22,000      38,000   16,000

(100 shares)

Orange bonds      02/12/12         04/11/20     34,000      42,000*   8,000

Green stock         02/14/20         11/23/20      11,000       13,000    2,000

(100 shares)

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