On January 1, 2014, Lightner bought 20,000 shares (5% ownership) of Winter Corp. common stock for $360,000. On May 3, 2014, Winter declared and distributed a 50% stock dividend. On September 1, 2014, Lightner sold 2,000 shares of its investment in Winter stock for $21,400.
Required:
Compute the amount of gain (loss) on the sale of this stock.

Question

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The Answer of On January 1, 2014, Lightner bought 20,000 shares (5% ownership) of Winter Corp. common stock for $360,000. On May 3, 2014, Winter declared and distributed a 50% stock dividend. On September 1, 2014, Lightner sold 2,000 shares of its investment in Winter stock for $21,400.
Required:
Compute the amount of gain (loss) on the sale of this stock.

On January 1, 2014, Lightner Bought 20,000 Shares (5% Ownership)