00 in 2017. 70 shares for $2,250 in 2018. 80 shares for $2,675 in 2019. They sold 160 shares of ABC in 2021 and did not identify which shares they sold. What basis should they use for computing gain or loss?

00 in 2017. 70 shares for $2,250 in 2018. 80 shares for $2,675 in 2019. They sold 160 shares of ABC in 2021 and did not identify which shares they sold. What basis should they use for computing gain or loss?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Storytime Books, LLC purchased the following shares of ABC stock:

60 shares for $1,700 in 2017.

70 shares for $2,250 in 2018.

80 shares for $2,675 in 2019.

They sold 160 shares of ABC in 2021 and did not identify which shares they sold. What basis should they use for computing gain or loss?

(a) $5,108

(b) $4,971

(d) $4,942

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