An investor purchased 500 shares of common stock (which is less than 20% of the outstanding stock), $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale? $12,750 gain $600 loss $600 gain $9,250 loss

An investor purchased 500 shares of common stock (which is less than 20% of the outstanding stock), $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale? $12,750 gain $600 loss $600 gain $9,250 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

An investor purchased 500 shares of common stock (which is less than 20% of the
outstanding stock), $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50
per share. What is the amount of gain or loss on the sale?
$12,750 gain
$600 loss
$600 gain
$9.250 loss

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