George bought the following amounts of Stock A over the years:
|
Date Purchased |
Number of Shares |
Adjusted Basis |
|
Stock A
|
11/21/1989
|
1,000
|
$24,000
|
|
Stock A
|
3/18/1995
|
500
|
9,000
|
|
Stock A
|
5/22/2004
|
750
|
27,000
|
On October 12, 2015, he sold 1,200 of his shares of Stock A for $38 per share.
a) How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?
b) How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from the 5/22/2004 purchase and 450 shares from the 11/21/1989 purchase?