On January 1, 2017, Lightner bought 20,000 shares 5% ownership) of Winter Corp. common stock for $360,000. On
May 3, 2017, Winter declared and distributed a 50% stock dividend. On September 1, 2017, Lightner sold 2,000 shares of its investment in Winter stock for $21,400.
Required:
Compute the amount of gain loss) on the sale of this stock.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2017, Lightner bought 20,000 shares 5% ownership) of Winter Corp. common stock for $360,000. On
May 3, 2017, Winter declared and distributed a 50% stock dividend. On September 1, 2017, Lightner sold 2,000 shares of its investment in Winter stock for $21,400.
Required:
Compute the amount of gain loss) on the sale of this stock.

On January 1, 2017, Lightner Bought 20,000 Shares 5% Ownership)