An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?

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Quizplus · Accepted Answer

The investor's cost per share is $21,750 / 500 = $43.50. Selling 100 shares at $49.50 each results in $4,950. The cost of these 100 shares is 100 * $43.50 = $4,350. The gain is $4,950 - $4,350 = $600.

An Investor Purchased 500 Shares of Common Stock, $25 Par