Eight years ago, SW purchased 1,750 shares of Delta stock. On May 20 of the current year, it sold these shares for $50 per share. Required: In each of the following cases, compute SW's recognized gain or loss on this sale: a. SW's cost basis in the 1,750 shares was $62 per share. It did not purchase any other Delta shares during this year. b. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on May 1 for $52 per share. c. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share. d. SW's cost basis in the 1,750 shares was $41 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share. a. b. C. d. Amount

Eight years ago, SW purchased 1,750 shares of Delta stock. On May 20 of the current year, it sold these shares for $50 per share. Required: In each of the following cases, compute SW's recognized gain or loss on this sale: a. SW's cost basis in the 1,750 shares was $62 per share. It did not purchase any other Delta shares during this year. b. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on May 1 for $52 per share. c. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share. d. SW's cost basis in the 1,750 shares was $41 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share. a. b. C. d. Amount

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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Eight years ago, SW purchased 1,000 shares of Delta stock. On May 20 of the current year, it sold these shares for $90 per share. Required: In each case in which SW purchased 1,200 Delta shares, compute its tax basis in the shares. b. SW's cost basis in the 1,000 shares was $104 per share. It purchased 1,200 shares of Delta on. May 1 for $92 per share. c. SW's cost basis in the 1,000 shares was $104 per share. It purchased 1,200 shares of Delta on June 8 for $92 per share. d. SW's cost basis in the 1,000 shares was $79 per share. It purchased 1,200 shares of Delta on June 8 for $92 per share. b. C. d. Tax basis
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Concord Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Concord does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Concord' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c)
Eight years ago, SW purchased 1,600 shares of Delta stock. On May 20 of the current year, it sold these shares for $62 per share. In each of the following cases, compute SW’s recognized gain or loss on this sale: SW’s cost basis in the 1,600 shares was $68 per share. It did not purchase any other Delta shares during this year. SW’s cost basis in the 1,600 shares was $68 per share. It purchased 1,800 shares of Delta on May 1 for $64 per share. SW’s cost basis in the 1,600 shares was $68 per share. It purchased 1,800 shares of Delta on June 8 for $64 per share. SW’s cost basis in the 1,600 shares was $59 per share. It purchased 1,800 shares of Delta on June 8 for $64 per share.
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