Samsing Inc.pays $18,000 to buy stock in another company and an additional $350 in commissions.Three months later, Samsing sells the stock for $19,000.At the time of sale, Samsing will recognize a:
A) A $650 loss
B) A $1,000 gain
C) A $350 loss
D) A $650 gain

Question

Quizplus · Accepted Answer

Samsing's initial cost for the stock was $18,000 + $350 in commissions, which equals $18,350.

When the stock is sold for $19,000, Samsing realizes a gain of $650 ($19,000 - $18,350).

Therefore, the correct answer is D, a $650 gain.