Lark Enterprises purchases 1,200 shares of Cardinal Corporation stock on July 1, 2019, for $360,000. On October 15, 2019, Lark purchases an additional 800 shares of Cardinal stock for $280,000. According to market quotations, Cardinal stock is selling for $450 per share on 12/31/19. Lark sells 600 shares of Cardinal stock on February 20, 2020, for $270,000. What is Lark's recognized gain or loss from the sale of Cardinal stock on February 20, 2020, assuming the shares sold are from the shares purchased on October 15, 2019? In your computations, round the per share amount to the nearest whole dollar, and use the rounded amount in subsequent computations.
Lark Enterprises purchases 1,200 shares of Cardinal Corporation stock on July 1, 2019, for $360,000. On October 15, 2019, Lark purchases an additional 800 shares of Cardinal stock for $280,000. According to market quotations, Cardinal stock is selling for $450 per share on 12/31/19. Lark sells 600 shares of Cardinal stock on February 20, 2020, for $270,000. What is Lark's recognized gain or loss from the sale of Cardinal stock on February 20, 2020, assuming the shares sold are from the shares purchased on October 15, 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 68P
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Transcribed Image Text:Lark Enterprises purchases 1,200 shares of Cardinal Corporation stock on July 1, 2019,
for $360,000.
On October 15, 2019, Lark purchases an additional 800 shares of Cardinal stock for
$280,000.
According to market quotations, Cardinal stock is selling for $450 per share on
12/31/19. Lark sells 600 shares of Cardinal stock on February 20, 2020, for $270,000.
What is Lark's recognized gain or loss from the sale of Cardinal stock on February 20,
2020, assuming the shares sold are from the shares purchased on October 15, 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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