11 Jul QUESTION 3 Helen Pitt has been an investor ever since she began having her own money from part-time jobs. Her grandpa, Joe Pitt, was so excited when Helen was born, that he bought 200 shares of Disney stock the day she was born, intending to give her one share per year of age every year on her birthday until she was 15 (one share at age one, two shares at age two, etc.). Helen was born August 1, 1990. (For purposes of the Disney stock only, we will ignore the impact of any stock splits). Joe was also an avid investor and liked to buy things that lasted for decades. He bought 1,000 shares of Ford Motor Company stock on August 1, 1977 for $1.80 per share. On August 8, 2000, Joe gave Helen a gift of some of his Ford shares. This gift was of 5,734 shares. On August 14, 2015, Grandpa Joe passed away. His will left all of his remaining shares in Ford to Helen. Helen decided to go back to college in the fall of 2016 and needed money for tuition so she sold all of her Ford and Disney stocks on June 15, 2016. She paid a broker a 1% commission based upon the gross sales price of the trades. Joe’s will also left Helen a large investment account at Charles Schwab. The details of the various trades made AFTER Joe’s death are below (assume the broker has the classification correct). Finally, Helen made an investment of her own in Sports Authority (SA) in September 2015 for $90,000. In February 2016, SA announced it was going into Chapter 11 bankruptcy to reorganize its debts. However, that did not work out so well and in May 2016, SA announced it was going into Chapter 7 liquidation and by the end of August 2016 sold all of its assets and ceased all business activities. Details of the Charles Schwab account: Required: Calculate Helen’s net capital gain or loss from all of the above transactions and determine whether the results are short-term or long-term, including how much, if any, and the character of any carryover to the following year. To receive credit, you must show all of your work and explain your reasoning for each conclusion you make. Simply showing numbers on a page will not result in credit.
Back on December 23, 2000, Jasmine Crusher purchased a home in Pahoa, Hawaii for $1,500,000 which included the land and the home. Her property tax bill for 2001 showed assessed value of the land of $300,000 and of the building for $1,200,000. She used the home as her personal residence until October 15, 2010 when her employer transferred her to San Francisco. Jasmine put the house on the market for a sale price of $1,900,000 but was receiving no offers. In February 2011, she found out that a house down the road had just sold for $1,250,000. So, she decided to rent it and use it for occasional vacations for herself. Jasmine hired a management company to find the renters. Since the house is in Hawaii, the management firm never had a problem having the house rented for most of the year. Because Jasmine used a 15 year loan, the loan was completely paid off in December 2015. Jasmine turned over all bill paying responsibilities to the management company starting in 2014. Below are the details Jasmine received from the management company for 2014 and 2015. However, in 2016, she decided that the management company was charging her too much for the small amount of work they seemed to be doing, so she fired them on June 1 and took over all of the work of renting the house and paying the bills. On December 2, 2016, the nearby volcano erupted and Jasmine’s house was burned to the ground by one of the advancing lava flows, while she was working in San Francisco. As a result of having been so busy with work and the rental, Jasmine neglected to pay her homeowners insurance that was due July 1, 2016, so at the time of the eruption, she had no insurance. The 2016 information is a combination of the management company information through May 31, and Jasmine’s records for the rest of the year up until the house was caught in the lava flow. Jasmine sold the land in a fire sale “as-is” for $50,000 on December 31, 2016. Jasmine is a successful IT consultant with AGI, made up of wages and interest income, for 2016 of $375,500 and $365,750 for 2015.
2014 2015 2016
Days rented 300 310 300
Personal days used 32 28 29
Rental income per day 240 260 280
Property taxes 22,500 23,063 23,639
Interest on mortgage 18,000 15,000 0
Insurance 1,150 1,250 0
Alarm Company 500 600 600
Management company 12,000 12,000 5,000
Advertising 1,250 1,300 1,400
Repairs 2,500 1,000 1,950
Cleaning fees 3,000 3,500 3,250
Accounting fees 1,250 1,300 1,200
Utilities 2,400 2,500 2,600
Landscaper fees 1,800 1,900 2,100
Cable TV 1,500 1,600 1,800
Required: Calculate all of the impacts of the above transactions on Jasmine’s 2
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.