Problem:
Deirdre sold 176 shares of stock to her brother, James, for $5,456. Deirdre purchased the stock several years ago for $7,216. (Loss amounts should be indicated by a minus sign.)
Question 1: What gain or loss does Deirdre recognize on the sale?
Question 2: What amount of gain or loss does James recognize if he sells the stock for $7,744?
Question 3: What amount of gain or loss does James recognize if he sells the stock for $6,512?
Question 4: What amount of gain or loss does James recognize if he sells the stock for $4,048?
Note: Show supporting computations in good form.