Peter purchases 100 shares of ABC stock for $10,000 on April 20th, and another 100 shares of ABC stock on June 19th. Peter sells ABC stock on November 22nd. What is Peter's basis in ABC stock at the time of the sale?

Peter purchases 100 shares of ABC stock for $10,000 on April 20th, and another 100 shares of ABC stock on June 19th. Peter sells ABC stock on November 22nd. What is Peter's basis in ABC stock at the time of the sale?

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

Peter purchases 100 shares of
ABC stock for $10,000 on April
20th, and another 100 shares of
ABC stock on June 19th. Peter
sells ABC stock on November
22nd. What is Peter's basis in ABC
stock at the time of the sale?
a. $16,000
b. $16,500
c. $17,000
d. $10,000

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