During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets 300 shares of IBM common 200 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 420 shares of Vanguard mutual fund Date Acquired 11/22/2019 Purchase Price Broker's Commission Paid at Time of Purchase 4/3/2020 $ 10,430 43,330 155,000 $ 100 300 53,300 15,500 1,300 550 No-load fund 12/12/2020 8/14/2021 3/2/2022 "No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund In 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022: Broker's Commission Paid at Investment Assets Date Sold Sale Price 300 shares of IBM common 5/6 $ 14,500 3,000 shares of Apple preferred 10/5 222,200 2,100 shares of Cisco common 8/15 63,330 Time of Sale $ 100 2,000 650 451 shares of Vanguard mutual fund 12/21 16,500 No-load fund "No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker Issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $14,400 on the Form 1099-8 they received. In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2022: The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2022 In 2016, Mrs. Howell loaned $6,800 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2022, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $3,100 short-term capital loss carryover and a $5,600 long-term capital loss carryover from prior years. The Howells did not Instruct their broker to sell any particular lot of IBM stock. The Howells earned $3,400 in municipal bond interest, $3,400 in interest from corporate bonds, and $4,800 in qualified dividends. Assume the Howells have $150,000 of wage Income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $83,100 rather than $3,100 as Indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carried beyond 2022 to future tax years?

During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets 300 shares of IBM common 200 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 420 shares of Vanguard mutual fund Date Acquired 11/22/2019 Purchase Price Broker's Commission Paid at Time of Purchase 4/3/2020 $ 10,430 43,330 155,000 $ 100 300 53,300 15,500 1,300 550 No-load fund 12/12/2020 8/14/2021 3/2/2022 "No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund In 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022: Broker's Commission Paid at Investment Assets Date Sold Sale Price 300 shares of IBM common 5/6 $ 14,500 3,000 shares of Apple preferred 10/5 222,200 2,100 shares of Cisco common 8/15 63,330 Time of Sale $ 100 2,000 650 451 shares of Vanguard mutual fund 12/21 16,500 No-load fund "No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker Issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $14,400 on the Form 1099-8 they received. In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2022: The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2022 In 2016, Mrs. Howell loaned $6,800 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2022, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $3,100 short-term capital loss carryover and a $5,600 long-term capital loss carryover from prior years. The Howells did not Instruct their broker to sell any particular lot of IBM stock. The Howells earned $3,400 in municipal bond interest, $3,400 in interest from corporate bonds, and $4,800 in qualified dividends. Assume the Howells have $150,000 of wage Income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $83,100 rather than $3,100 as Indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carried beyond 2022 to future tax years?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

See similar textbooks