C sold 300 shares of IBM stock for $5,200.She had paid $3,000 for the stock.Commissions of $300 on the sale and $180 on the purchase were paid.How much are C's amount realized and her gain realized, respectively, on this sale?
A)$2,200 and $1,720
B)$4,720 and $1,720
C)$4,900 and $1,720
D)$5,200 and $2,200

Question

Quizplus · Accepted Answer

C's amount realized is the total amount she received from selling the stock: 
$5,200 - $300 commission = $4,900. 
Her gain realized is the difference between the amount realized and the cost basis: 
$4,900 - ($3,000 + $180 commission) = $1,720.

C Sold 300 Shares of IBM Stock for $5,200