Ask Question
26 December, 17:58

1 as follows: February 3, year 1 April 15, year 1 May 28, year 1 July 5, year 1 September 30, year 1 Number of shares Purchased (sold) 1,100 2,500 (750) 1,400 (4,000) Price per share $11 9 13 12 15 Janson traded stock in Flax Co. held as trading securities during year No other transactions took place for Flax during the remainder of the year. At December 31, year 1, Flax is trading at $10 per share. Janson trades securities on a last in, first out basis. What amount is the net value of the investment in Flax at year end

+4
Answers (1)
  1. 26 December, 18:05
    0
    Answer: The net value of the investment in Flax at year end = $2,500

    Explanation: Given from the question

    Year 1 Number of shares Purchased (sold) Price per share

    February 3, 1,100 $11

    April 15, 2,500 $9

    May 28, (750) $13

    July 5, 1,400 $12

    September 30, (4,000) #15

    From the given values above, we can see that

    Total number of shares purchased for the year 1 = 1,100 + 2500 + 1400 = $5000

    Total number of shares sold for the year 1 = 4000 + 750 = $4,750

    Share Balance = $5000 - $4,750 = $ 250

    but flax is trading at $10 per share

    Therefore the amount of net value of investment = $250 x $10 = $2,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “1 as follows: February 3, year 1 April 15, year 1 May 28, year 1 July 5, year 1 September 30, year 1 Number of shares Purchased (sold) ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers