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In January, Charlie sold stock with a cost basis of $40,000 tohis brother Allen for $30,00

In January, Charlie sold stock with a cost basis of $40,000 tohis brother Allen for $30,00

In January, Charlie sold stock with a cost basis of $40,000 tohis brother Allen for $30,000, the fair market value of the stockon the date of sale. Five months later, Allen sold the same stockthrough his broker for $45,000. What is the tax effect of thesetransactions? (Points : 5)       Disallowed loss to Allen of $10,000; recognized gain to Charlie of$5,000

       Disallowed loss to Charlie of$10,000; recognized gain to Allen of $15,000

       Deductible loss to Charlie of$10,000; recognized gain to Allen of $15,000

       Disallowed loss to Charlie of$10,000; recognized gain to Allen of $5,000

       None of the above

During the year, Clara took a trip from Chicago to Rome. She wasaway from home for 20 days. She spent 6 days vacationing and 14days on business (including the 3 travel days). Her expenses are asfollows:

Airfare

$1,600

Lodging (20 days x $70)

$1,400

Meals (20 days x $120)

$2,400

Valet service (cleaning of laundry)

$160

 

Chris's deduction is: (Points : 5)       $3,100.

       $4,360.

       $5,080.

       $5,560.

       None of the above

Abhinav 03-Dec-2019

Answer (UnSolved)

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