Miss Wells has purchased the shares of two companies over the years. Each company has onlyone class of shares. Purchases and sales of shares in the first of these companies, Memo Inc.,are as follows:February, 2015 purchaseNovember, 2016 purchaseApril, 2017 purchaseOctober, 2017 saleSeptember, 2019 purchaseNovember, 2019 sale60 @ $2490 @ 2845 @30(68) @3622 @26(53) @40Purchases and sales of shares in the second company, Demo Ltd., are as follows:April, 2018 purchaseDecember, 2018 purchaseJuly, 2019 sale$24160 @(260) @ 3620033Required:A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held onDecember 31, 2019.B. Determine the taxable capital gain resulting from the July, 2019 disposition of the DemoLtd. shares.

Average cost per share = Total purchases / number of shares held Gain or lass on shares…

A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on December 31, 2019. B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo Ltd. shares.

A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on December 31, 2019. B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo Ltd. shares.

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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