The following stock transactions are short term investment transactions in tradi

Question

The following stock transactions are short term investment transactions in trading securities and dividends related to those investment holdings for Beach Crest Incorporated. None of the holdings exceed 10% of the stock in any of the issuing corporations. Follow the development of the portfolio and answer all questions that follow: 1. Purchased 1200 shares of AOL at S58 a share-plus a brokerage commission of $800. 2. Purchased 2500 shares of COMCAST at $36 a share-plus a brokerage commission of $1400 3. Received a cash dividend from AOL of $1.25 a share 4. Purchased 600 shares of Time Warner at $52 a share-plus a brokerage fee of $600. 5. Sold 500 of our AOL shares at $62 a share less a brokerage commission of $300 6, Received a 5% stock dividend from Comcast-market value of a share was reported as $37.50 7. Received a cash dividend from Time Warner of $1.00 a share 8. Purchased 750 shares of AT&T; for $40 a share-plus a $500 commission 9. Received a 2 for 1 stock split from AOL 10.Received a S.75 per share cash dividend from Comcast 11.Sold 500 shares of AOL at $30 a share less a brokerage fee of $700 12.Sold 200 shares of Time Warner at $58 a share less a $600 brokerage 13. Received a 10% stock dividend (whole shares only) from 14.Sold half our Comcast stock at $35.50 a share-less a brokerage fee of 15.Received a cash dividend from AT&T; of $.50 a share fee COMCAST-Market Value of a share was listed as $35 $2400. Indiadl atiselares Dham AGAIN!!!! Beach Crest is the investor carefully track..#of shares. Basis of the shares, Dividend Income, Gain/Loss on sale of Investments Individual holding worth, and the total value of your asset "Trading Securities"

Explanation / Answer

A. Total Dividend income as follows:

B. In transaction #5

Cash received - $ 30,700.

Net Sale Proceeds

Gain = $1700 ( 500 @ $4 gain per share less $ 300 commission paid)

C. 125 shares were received.( 5% of 2500 shares)

      Income gets reported = $ 187.50 ( 125 @ 1.50 per share , as the purchase price was $36)

    Basis of new shares received = $4687.50 ( 125*$37.5)

D. Basis per share is $30,500 ( 750 shares @ $40 + $500 brokerage).

E. Cash Proceeds in #11 = $14,300 ( 500 shares @ $30 less $700 brokerage)

   Loss = ($14,000) -- ( 500shares @ $28 per share)

F. Cash proceeds = $11,000 ( 200 shares 58 per share less brokerage of $600)

G. Cash received= $ 48,844.25 . Working as below :

Company Dividend($) Remarks AOL 1500 @1.25 for 1200 shares Time Warner 600 @1.0 for 600 shares Comcast 1968.75 @0.75 for 2625 shares including additional 125 received through stock dividend. AT & T 375 @0.75 for 750 shares Total Dividend 4443.75

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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