Wyatt sold 300 shares of Clothes and More Inc. ,in 2016 for $30,000.Wyatt's investment portfolio includes the following purchases of Clothes and More Inc. ,stock: $\begin{array}{rr}
2009 & 100 \text { shares@80 per share } \
2010 & 75 \text { shares @75 per share } \
2011 & 125 \text { shares @67 per share }\
2012 & 100 \text { shares @85 per share }
\end{array}$ Assuming Wyatt does not identify which shares he sold,he will recognize a(an)

Question

Quizplus · Accepted Answer

Wyatt's total cost basis for the 300 shares sold is calculated using the FIFO method: (100 shares @ $80) + (75 shares @ $75) + (125 shares @ $67) = $8,000 + $5,625 + $8,375 = $22,000. The sale price was $30,000, resulting in a gain of $30,000 - $22,000 = $8,000.

Wyatt Sold 300 Shares of Clothes and More Inc Assuming Wyatt Does Not Identify Which Shares He Sold,he Will