An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares were sold for $31 per share. What is the amount of gain or loss on the sale? a.$1,276 loss b.$2,204 loss c.$2,204 gain d.$1,276 gain
An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares were sold for $31 per share. What is the amount of gain or loss on the sale? a.$1,276 loss b.$2,204 loss c.$2,204 gain d.$1,276 gain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares were sold for $31 per share. What is the amount of gain or loss on the sale?
a.$1,276 loss
b.$2,204 loss
c.$2,204 gain
d.$1,276 gain
Expert Solution
Step 1
Sale proceeds of shares | 116 shares*$31 per share | 3596 |
Less: Cost of shares | (23814*116)/567 | 4872 |
Loss on sale | -1276 |
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