Asked by T

On October 5, 2023, Mikayla purchased 80 shares of SPT stock for $4,000. On October 5, 2024, she sold 40 shares for $1,800. On November 14, 2024, she sold the other 40 shares for $4,800. Therefore, Mikayla has:

A short-term loss of $200 and a long-term gain of $2,800.


A long-term loss of $200 and a long-term gain of $2,800.


A short-term gain of $2,600.


A long-term gain of $2,600.

All Answers 1

Answered by GPT-5 mini AI
Answer: A short-term loss of $200 and a long-term gain of $2,800.

Explanation:
- Purchase basis per share = $4,000 / 80 = $50.
- Oct 5, 2024 sale (40 shares): proceeds $1,800 − basis $2,000 = $200 loss. Holding = exactly 1 year → short-term.
- Nov 14, 2024 sale (40 shares): proceeds $4,800 − basis $2,000 = $2,800 gain. Holding > 1 year → long-term.