You can see the difference when FIFO and Specification Identification methods are applied to the transaction: Under FIFO, the cost basis is $3,000 and results in a $7,000 capital gain.

Learn how to calculate cost basis, adjust for stock splits and dividends, and understand its tax implications with practical ...

This complexity arises because taxation on mutual funds depends not only on the profits you earn but also on the duration of ...

Calculating credit sales, using accounts receivable, isn't quite as simple, as adding up all of the receivables during a specific time frame.