A sold 100 shares of F corporation stock for $32,500.A had to pay a sales commission of $940.F had originally paid $14,750 for the shares and a purchase commission of $420.How much are A's amount realized and gain realized, respectively?
A)$32,500; $16,390
B)$31,140; $16,390
C)$31,560; $16,390
D)$31,140; $17,750

Question

Quizplus · Accepted Answer

Amount realized = Sale price - Sales commission
Amount realized = $32,500 - $940 = $31,560

Gain realized = Amount realized - Cost basis - Purchase commission
Gain realized = $31,560 - $14,750 - $420 = $16,390

A Sold 100 Shares of F Corporation Stock for $32,500