Edward purchased stock last year as follows: In April of this year, Edward sells 80 shares for $250. Edward cannot specifically identify the stock sold. The basis for the 80 shares sold is

Question

Edward purchased stock last year as follows:  In April of this year, Edward sells 80 shares for $250. Edward cannot specifically identify the stock sold. The basis for the 80 shares sold is

Quizplus · Accepted Answer

To calculate the basis of the 80 shares sold, we need to use the First-In-First-Out (FIFO) method. This means we assume that the shares sold were the first ones purchased.

According to the stock code provided, Edward purchased the shares at $2 per share (11eac5e0_5bc5_3b59_888f_fbcd58740218_TB2922_00). Therefore, the total cost of the 80 shares sold would be:

80 shares x $2 per share = $160

Therefore, the basis for the 80 shares sold is $160.

Edward Purchased Stock Last Year as Follows: in April