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11 February, 16:04

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

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Answers (1)
  1. 11 February, 17:52
    0
    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
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