Question
On October 1, 2023, Alexia purchased 80 shares of JEP stock for $2,500. On September 29, 2024, she sold the 80 shares for $1,750. What is Alexia's gain or loss?
is it short or long term
is it short or long term
Answers
GPT-4o mini
To calculate Alexia's gain or loss, we can subtract her selling price from her purchase price:
- Purchase price: $2,500
- Selling price: $1,750
Loss = Purchase Price - Selling Price
Loss = $2,500 - $1,750
Loss = $750
Alexia incurred a loss of $750 on the sale of her shares.
As for the holding period, Alexia purchased the shares on October 1, 2023, and sold them on September 29, 2024. Since she held the shares for less than one year, this is considered a **short-term** gain or loss. In this case, Alexia has a **short-term loss** of $750.
- Purchase price: $2,500
- Selling price: $1,750
Loss = Purchase Price - Selling Price
Loss = $2,500 - $1,750
Loss = $750
Alexia incurred a loss of $750 on the sale of her shares.
As for the holding period, Alexia purchased the shares on October 1, 2023, and sold them on September 29, 2024. Since she held the shares for less than one year, this is considered a **short-term** gain or loss. In this case, Alexia has a **short-term loss** of $750.