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)$650 loss.
B)$1,000 gain.
C)$350 loss.
D)$650 gain.

Question

Quizplus · Accepted Answer

To calculate the gain or loss on the sale of the stock, we need to subtract the cost (original purchase price plus commission) from the sale price:

Sale price: $19,000 
Cost: $18,000 + $350 = $18,350

Gain/Loss: $19,000 - $18,350 = $650 gain

Therefore, the correct answer is (D) $650 gain.