Falcon Enterprises purchases 1,200 shares of Sparrow Corporation stock on August 15, 2019, for $480,000. On November 5, 2019, Falcon purchases an additional 800 shares of Sparrow stock for $320,000. According to market quotations, Sparrow stock is selling for $450 per share on 12/31/19. Falcon sells 600 shares of Sparrow stock on February 20, 2020, for $300,000. What is Falcon's recognized gain or loss from the sale of Sparrow stock on February 20, 2020, assuming the shares sold are from the shares purchased on November 5, 2019? In your computations, round the per- share amount to the nearest whole dollar, and use the rounded amount in subsequent computations.
Falcon Enterprises purchases 1,200 shares of Sparrow Corporation stock on August 15, 2019, for $480,000. On November 5, 2019, Falcon purchases an additional 800 shares of Sparrow stock for $320,000. According to market quotations, Sparrow stock is selling for $450 per share on 12/31/19. Falcon sells 600 shares of Sparrow stock on February 20, 2020, for $300,000. What is Falcon's recognized gain or loss from the sale of Sparrow stock on February 20, 2020, assuming the shares sold are from the shares purchased on November 5, 2019? In your computations, round the per- share amount to the nearest whole dollar, and use the rounded amount in subsequent computations.
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 65P
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Can you please answer the accounting question?
Transcribed Image Text:Falcon Enterprises purchases 1,200 shares of Sparrow Corporation stock
on August 15, 2019, for $480,000.
On November 5, 2019, Falcon purchases an additional 800 shares of
Sparrow stock for $320,000.
According to market quotations, Sparrow stock is selling for $450 per
share on 12/31/19. Falcon sells 600 shares of Sparrow stock on February
20, 2020, for $300,000.
What is Falcon's recognized gain or loss from the sale of Sparrow stock
on February 20, 2020, assuming the shares sold are from the shares
purchased on November 5, 2019? In your computations, round the per-
share amount to the nearest whole dollar, and use the rounded amount
in subsequent computations.
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