Explanation Given Information: The provided table is, Company Number of Shares Purchase Price Selling Price Commissions Buy Sell Odd Lot Regal Fantasy 400 39.25 dollars 44.75 dollars 2% 2% - Formula used: To find the total cost, proceeds, and gain (or loss) on a stock transaction, the following steps are required as, Step 1: Find the cost of the shares. Cost of shares = Price per share × Number of shares Step 2: Compute the total amount of the broker’s commission. Broker's commission = Cost of shares × Commission rate Step 3: Calculate the total cost of stock purchase. Total Cost = Cost of shares + Broker's commission Proceeds from selling stock, Step 1: Calculate the value of shares on the sale. Value of shares = Price per share × Number of shares Step 2: Compute the total amount of the broker’s commission. Step 3: Calculate the proceeds by subtracting the commission from the value of the shares. Proceeds = Value of shares − Broker's commission Total gains (or loss) on the transaction is, Gain ( or loss ) on transaction = Proceeds − Total cost Calculation: Consider the provided information, Cost of purchasing stock: Cost of shares = Price per share × Number of shares = 39

8th Edition

ISBN: 9781305888715

Author: Brechner

Publisher: CENGAGE LEARNING - CONSIGNMENT

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Chapter 20, Problem 12AT

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The total cost, proceeds, and gain (or loss) for the Regal Fantasy company.

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