Mr. Giraffe owns 500 shares of Southern Corporation common stock, which waspurchased on March 8, 2011, for $7,500. In 2023, Mr. Giraffe buys and sells SouthernCorporation stock as follows. On October 3, Giraffe purchases an additional 100 sharesfor $1,300. On October 12, he sells the original 500 shares acquired in 2011 for $6,250.On November 1, he purchases an additional 250 shares for $2,750. a. What is Mr. Giraffe's recognized gain or loss as a result of the sale on October 12?

A recognized gain is when an investment or asset is sold for an amount that is greater than…

Answered: Mr. Giraffe owns 500 share

Business

Accounting

Mr. Giraffe owns 500 share

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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Question

Mr. Giraffe owns 500 shares of Southern Corporation common stock, which was
purchased on March 8, 2011, for $7,500. In 2023, Mr. Giraffe buys and sells Southern
Corporation stock as follows. On October 3, Giraffe purchases an additional 100 shares
for $1,300. On October 12, he sells the original 500 shares acquired in 2011 for $6,250.
On November 1, he purchases an additional 250 shares for $2,750.

a. What is Mr. Giraffe's recognized gain or loss as a result of the sale on October 12?

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