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Chrome File Edit View History Bookmarks People Window Help 9?52% D Tue 3:16 PM Q

ID: 2530151 • Letter: C

Question

Chrome File Edit View History Bookmarks People Window Help 9?52% D Tue 3:16 PM Q e chegg Study Guided Solutio X Connect | ? secure ! https://newconnect.mheducation.com flow/connect.html Chepter 11 HW Help Save & Eit Submit Check my work 29 Required information The following information appilies to the questions displayed below Deirdre sold 100 shares of stock to her brother, James, for $2,400. Deirdre purchased the stock several years ago for $3,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) 0.25 points a. What gain or loss does Deirdre recognize on the sale? Prinm Pre29 29 30 31 32 or33 ??? Next >

Explanation / Answer

HELLO STUDENT

a) When Deirde sold 100 share to his brother James for $2400

he has got the loss of $600 on the sale

Initial purchase price of 100 shares = $3000

sale price of 100 share= $2400

Sale price - purchase price= $2400-$3000= ($600) loss.

b)  When Deirde sold 100 share to his brother James for $3200

he has got the gain of $200 on the sale

Purchase price of 100 share=$3000

Sale price- purchase price=$3200-$3000= $200 profit

c) When Deirde sold 100 share to his brother James for $2600

he has got the loss of $400 on the sale

Initial purchase price of 100 shares = $3000

sale price of 100 share= $2600

Sale price - Purchase price = $2600-$3000= ($400) loss.

When Deirde sold 100 share to his brother James for $2000

he has got the loss of $1000 on the sale

Initial purchase price of 100 shares = $3000

sale price of 100 share= $2000

Sale price - purchase price= $2000-$3000= ($1000) loss.

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