Question Details

Operation Management Homework

Please complete the 2014 federal income tax return for Josephand Diana Cohen

The Cohens did not own, control or manage any foreign bankaccounts nor were they a grantor or beneficiary of a foreign trustduring the tax year.

The Cohens had the following activity in their brokerage accountduring the year (all transactions were reported on a Form 1099-B.Basis information on each stock sale was reported to the IRS):

Sold 2,000 shares ofMicrosoft                                 7/1/14                       $22,500

Sold 75 shares of Apple,Inc.                                  4/15/14                       $28,750

Sold 350 shares of CooperTire                                 10/14/14                     $14,700

Sold 1,000 shares of CardinalHealth                       9/3/14                         $35,000

Sold 50 shares of UnionPacific                                1/7/14                         $2,750

Purchased 100 shares of Procter & Gamble             7/10/14                       $7,700

Purchased 350 shares of CooperTire                       11/1/14                       $14,000

Purchased 350 shares ofPepsiCo                             5/14/14                       $32,000

Purchased 300 shares ofKellogg                               10/14/14                     $21,000

Relevant tax basis/holding period information related to salesof securities in the current year:

Purchased 2,000 shares of Microsoft on 5/1/14 for $21,000

Purchased 200 shares of Apple, Inc. on 3/8/2012 for $90,000

Purchased 300 shares of Cooper Tire on 1/12/2011 for $9,000

Purchased 50 shares of Cooper Tire on 6/28/14 for $2,000

Received 1,000 shares of Cardinal Health from Diana’s father asa gift on 10/10/98. Her father’s basis in the stock at the time ofthe gift was $7,000. Fair market value of the stock at the date ofthe gift was $41,000

Purchased 100 shares of Union Pacific on 9/5/13 for $6,000

The Cohens have a $43,000 long-term capital loss carryover fromtheir prior tax year.