Simon purchased 1,000 shares of ABC stock for $8,000 on April 4.On March 1 he had sold 1,500 shares of ABC stock for $9,000 that he had purchased three months earlier for $15,000.What is Simon's realized and recognized loss,respectively,on the March 1 stock sale?
A)$6,000,$6000
B)$6,000,0
C)$6,000,$4,000
D)$4,000,$6,000
E)None of the above

Question

Quizplus · Accepted Answer

The realized loss is the difference between the selling price and the cost of the shares sold, which is $9,000 - $15,000 = $6,000. The recognized loss is the same as the realized loss, since the shares were sold at a loss.

Simon Purchased 1,000 Shares of ABC Stock for $8,000 on April