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: 2008 100 shares @ 80 per share
2009 75 shares @ 75 per share
2010 125 shares @ 67 per share
2011 100 shares @ 85 per share
Assuming Wyatt does not identify which shares he sold,he will recognize aan)

Question

Quizplus · Accepted Answer

Wyatt's total cost basis for 300 shares using FIFO (first-in, first-out) is $23,000 (100 shares from 2008 at $80 each, 75 shares from 2009 at $75 each, and 125 shares from 2010 at $67 each). Selling for $30,000 results in a gain of $7,000.

Wyatt Sold 300 Shares of Clothes and More Inc