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- On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale? $300 long-term capital gain. $300 long-term capital loss. $300 short-term capital gain. $300 short-term capital lossCristiano Ronaldo purchased a single share of stock for $14 and sold it one year later for $16.50. While he owned the stock, Cristiano received two semi-annual dividends of $0.16 each. Cristiano's holding period return on this stock is: a. 15.0%. O b. 13.0%. O c. 19.3%. O d. 20.1%. Which one of the following is an internal characteristic that can affect the value of an investment? a. Political events. b. Taxation policy. Oc. Capital structure. O'd. Inflation. Next page iz1 (Chapter 2) Jump to..James purchased Eastern Industry's stock for $56.85 per share and sold it 18 months later for $59.95 after receiving a cumulative dividend of $2.75 at the end of the 18 months. What was James' holding period return (HPR), Simple Annualized Return, and Compound Annualized Return, respectively? O A. 10.29%, 6.86%, 4.52% O B. 6.86%, 6.75%, 10.29% OC. 6.75%, 6.86%, 10.29% O D. 10.29%, 6.75%, 6.86%
- 2. Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $42400 and later receives a nontaxable preferred stock dividend of 200 shares of Nordstrom preferred stock when the FMV of the preferred was $60 per share and the FMV of the common was $48 per share. What is the basis of the preferred shares after the dividend? The answer is $32560 please explain how to calculate properly1. Andrew owns shares in Telstra. Last financial year, Andrew received a $140 dividend from Telstra with $60 of franking credits attached. What amount must Andrew include in his assessable income for the year in relation to the dividend?a. $200b. None of the above.c. $140d. $6014. On March 4, 20x3, Evan Co. purchased 1,000 shares of LVC common stock (ordinary shares) at P80 per share. On September 26, 20x3, Evan received 1,000 stock rights to purchase an additional 1,000 shares at P90 per share. The stock rights had an expiration date of February 1, 20x4. On September 30, 20x3, LVC's common stock had a market value, ex-rights, of P95 per share and the stock rights had a market value of P5 each. What amount should Evan report on its September 30, 20x3 balance sheet as the cost of its investment in stock rights? a. 4,000 b. 5,000 c. 10,000 d. 0 (AICPA)
- Jake purchased 100 shares of ABC stock at GHS42.50 per share. After seven months, he sold all of his shares at a price of GHS39.75 a share. Jake received a total of GHS1.10 per share in dividends during the time he owned the shares. Jakeʹs holding period return is * -2.8%. 4.2%. -3.9%. 9.1%.Dougie sold the following stocks in year 5: Date Purchased Stock Cost Date Sold Proceeds from Sale 54.000 $10,000 V6/YR3 12/31/YR5 $3.000 $12,000 $14,000 4/21/YR4 12/31/YRS $12,000 $12,500 12/31/YRS $13,800 What is the overall net capital gain/loss of the above transactions and what is the tax treatment of the gain/loss? Y 7/2/YRS 12/31/YRS 11/30/YRS Multiple Cholce $5,300 LTCG taxed at preferential rates $5,300 STCG taxed at ordinary rates $5,000 LTCG taxed at preferential rates and $30O STCG taxed at ordinary rates $5,000 STCG taxed at ordinary rates and $300 LTCG taxed at preferential rates $4,700 LTCG taxed at preferential ratesYear 1 January 5 Selk purchased se, eee shares (20% of total) of Kildaire's common stock for $1,500,000. October 23 kildaire declared and paid a cash dividend of $2.40 per share. December 31 Kildaire's net income for the year is $1,112,000, and the fair value of its stock at December 31 is $34 per share. Year 2 October 15 xildaire declared and paid a cash dividend of $3.30 per share. December 31 Kildaire's net income for the year is $1,166,000, and the fair value of its stock at December 31 is $37 per share. Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4 Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant Influence over the investee. No 1 Year 3 Required: Prepare Journal entries to record the preceding transactions and events for Selk. 2 January 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $58,000 cash. Answer is not complete.…
- George bought the following amounts of Stock A over the years: Note: Loss amounts should be indicated with a minus sign. Date Purchased Number of Shares Adjusted Basis Stock A 11/21/1996 1,140 $ 27,360 Stock A 3/18/2002 570 10,260 Stock A 5/22/2011 890 32,040 On October 12, 2022, he sold 1,410 of his shares of Stock A for $38 per share. a. How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? b. How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 890 shares from the 5/22/2011 purchase and 520 shares from the 11/21/1996 purchase?Digby owns 240 shares of Quantex with a market value of $5,940. Quantex has just announced a 3 for 2 stock split. Assuming the value of Digby's holdings stays the same until the split is recorded, what would the price of Quantex be on the day of record? $16.50 or $37.13Accounting Abco Corporation declared a $5 per share dividend on September 15. The date of record for the dividend was October 1 (the stock began selling ex-dividend on October 2). The dividend was paid on October 15. Jonas is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following circumstances: Jonas bought 100 shares of Abco stock on September 10 for $40 per share. He received a $500 dividend on October 15. Jonas still owns the shares at year-end. Jonas bought 100 shares of Abco stock on August 22 for $40 per share. Jonas sold his Abco shares on October 5 for $50 per share. Jonas received the $500 dividend on October 15 (note that even though he didn't own the stock on October 15, he still received the dividend because he was the shareholder on the record date). Jonas bought 100 shares of Abco stock for $64 per share on August 10. He received the $100 dividend on October 15. Jonas still owns the shares at year- end.
