Murray Corp. manufactures surveying equipment. In your computations, round per s

Question

                    Murray Corp. manufactures surveying equipment.                 

                    In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar.                 

Purchased for cash 3,000 shares of McDowell Inc. stock for $25 per share plus a $ 140 brokerage commission. Received dividends of $0.46 per share on McDowell Inc. stock. Purchased 1,000 shares of McDowell Inc. stock for $35 per share plus a $160 brokerage commission. Sold 3,200 shares of McDowell Inc. stock for $40 per share less a $200 brokerage commission. Murray assumes that the first investments purchased are the first investments sold. Received dividends of $0.51 per share on McDowell Inc. stock.

Explanation / Answer

July 10

Investiments - 82,172    ( 1st investiment : $75,140 / 3,000 shares) x 3000 shares = 75,140

                                     2 nd investiment: $35,160 / 1,000 shares ) x 200 shares = 7,032

                                                                                                  3200 shares = 82,172

Gain on sale of investiments: 127800 - 82172 = 45,628

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