INVESTOR COPPORATIONS BUY STOCK OF OTHER CORPORATIONS TO HOLD AS INVESTMENTS ALS

Question

INVESTOR COPPORATIONS BUY STOCK OF OTHER CORPORATIONS TO HOLD AS INVESTMENTS ALSO. THEY THEN HAVE GAIN OR LOSSES TO REPORT ON RESALES. THEY ALSO HAVE THE POSSIBILITY AS THE STOCKHOLDER OF RECEIVING CASH AND STOCK DIVIDENDS THEY ALSO ARE SUBJECTED TO A STOCK SPLIT IF THEY ARE HOLDING THE STOCK AT THAT TIME. co A buy shares in Co. X 100 shares of $5 par for $30 a share and a 10% Brokerage Fee.. Total DEBIT to the asset INVESTMENT account Value of each share (BASIS) GET A 10% STOCK DIVIDEND No of Shares??? VALUE OF EACH SHARE NOW HELD VALUE OF THE INVESTMENT ASSET ACCOUNT HOLDING THOSE SHARES AT THE TIME OF A 2 FOR I STOCK SPLIT VALUE OF THE INVESTMENT ASSET ACCOUNT VALUE OF EACH SHARE NOW HELD GAIN OR LOSS IF THEY SOLD ALL SHARES FOR $15 a share

Explanation / Answer

100 Shares of $5 par for $30 a share and 10% brokerage fee

(100*30 = 3000 @110%=3300

Total debit to investment account

$3,300

Value of each share

$33.00

10% Stock dividend = 100@110% = 110

110 shares

Value of each share now held

$30 per share

Value of the investment asset account

$3,300

At time of split

$3300

Now held

$3300

Gain or loss

(1,650)

(30 -15) 110

100 Shares of $5 par for $30 a share and 10% brokerage fee

(100*30 = 3000 @110%=3300

Total debit to investment account

$3,300

Value of each share

$33.00

10% Stock dividend = 100@110% = 110

110 shares

Value of each share now held

$30 per share

Value of the investment asset account

$3,300

At time of split

$3300

Now held

$3300

Gain or loss

(1,650)

(30 -15) 110

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.