Question

Edna, an individual calendar-year taxpayer, purchased 100 shares of Freeman Corporation common stock for $18,000 on 4/10/2011. She purchased an additional 30 shares of Freeman Corporation common stock for $5,000 on 7/8/2015. On 7/29/2015, Edna sold the 100 shares purchased on 4/10/2011 for $12,000. Then on 8/14/2015, she purchased an additional 50 shares of Freeman Corporation common stock for $8,000. What is the amount of Edna's recognized loss for 2015, and what is the basis for her remaining 80 shares of Freeman Corporation stock?

          Edna, an individual calendar-year taxpayer, purchased 100 shares of Freeman Corporation common stock for $18,000 on 4/10/2011. She purchased an additional 30 shares of Freeman Corporation common stock for $5,000 on 7/8/2015. On 7/29/2015, Edna sold the 100 shares purchased on 4/10/2011 for $12,000. Then on 8/14/2015, she purchased an additional 50 shares of Freeman Corporation common stock for $8,000. What is the amount of Edna's recognized loss for 2015, and what is the basis for her remaining 80 shares of Freeman Corporation stock?

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