Edward purchased stock last year as follows: In April of this year,Edward sells 80 shares for $250.Edward cannot specifically identify the stock sold.The basis for the 80 shares sold is

Question

Edward purchased stock last year as follows:  In April of this year,Edward sells 80 shares for $250.Edward cannot specifically identify the stock sold.The basis for the 80 shares sold is

Quizplus · Accepted Answer

C)If the exact shares cannot be identified,the FIFO method must be used.The 80 shares sold are assumed to have come from the March purchase.$270/100 = $2.70 × 80 = $216.

Edward Purchased Stock Last Year as Follows: in April