An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?

1) $12,750 gain

2) $600 gain

3) $600 loss

4) $9,250 loss

Question

Katelynn Warren

Business

5 October, 14:17

An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?

1) $12,750 gain

2) $600 gain

3) $600 loss

4) $9,250 loss

+1

Answers (1)

Know the Answer?

Tristan Baldwin · Answer 1

correct option is 2) $600 gain

Explanation:

given data

common stock = 500 shares

par value = $25

sold = 100 share

per share = $49.50

solution

we get here first sale proceed of share that is

sale proceed of share = 100 share * $49.50 per share

sale proceed of share amount = $4950

and cost of share will be

cost of share = 100 share * $43.50 per share

cost of share = $4350

so here we get gain on sale of share that is

gain = $4950 - $4350

gain on sale = $600

so correct option is 2) $600 gain

An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?1) $12,750 gain2) $600 gain3) $600 loss4) $9,250 loss

An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?

1) $12,750 gain

2) $600 gain

3) $600 loss

4) $9,250 loss