Finch, Inc., purchases 1,000 shares of Bluebird Corporation stock on October 3, 2017, for $400,000. On December 12, 2017, Finch purchases an additional 750 shares of Bluebird stock for $280,000. According to market quotations, Bluebird stock is selling for $400 per share on 12/31/17. Finch sells 500 shares of Bluebird stock on March 1, 2018, for $224,000. What is Finch's recognized gain or loss from the sale of Bluebird stock on March 1, 2018, assuming the shares sold are from the shares purchased on December 12, 2017? In your computations, round the per share amount to the nearest whole dollar, and use the rounded amount in subsequent computations.
Finch, Inc., purchases 1,000 shares of Bluebird Corporation stock on October 3, 2017, for $400,000. On December 12, 2017, Finch purchases an additional 750 shares of Bluebird stock for $280,000. According to market quotations, Bluebird stock is selling for $400 per share on 12/31/17. Finch sells 500 shares of Bluebird stock on March 1, 2018, for $224,000. What is Finch's recognized gain or loss from the sale of Bluebird stock on March 1, 2018, assuming the shares sold are from the shares purchased on December 12, 2017? In your computations, round the per share amount to the nearest whole dollar, and use the rounded amount in subsequent computations.
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 76IIP
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Provide answer accounting question with calculation
Transcribed Image Text:Finch, Inc., purchases 1,000 shares of Bluebird Corporation stock on October 3, 2017, for $400,000.
On December 12, 2017, Finch purchases an additional 750 shares of Bluebird stock for $280,000.
According to market quotations, Bluebird stock is selling for $400 per share on 12/31/17. Finch sells 500
shares of Bluebird stock on March 1, 2018, for $224,000.
What is Finch's recognized gain or loss from the sale of Bluebird stock on March 1, 2018, assuming the
shares sold are from the shares purchased on December 12, 2017? 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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