In Case B, Pensacola would record a gain/(loss) of:

Question

Quizplus · Accepted Answer

In Case B, Pensacola sold the 100 shares for $70 per share. However, these 100 shares were purchased at a cost of $75 per share, resulting in a loss of $5 per share for Pensacola. Therefore, the total loss incurred by Pensacola would be $5 x 100 = $500. However, since Pensacola had received a dividend of $3 per share on these 100 shares, the net loss would be reduced to $500 - $300 = $2000. 
Since Pensacola had originally purchased the 100 shares for $7500, the loss of $2000 represents a loss of (2000/7500) x 100% = 26.67%. This loss of 26.67% on the original cost would translate to a loss/gain of (26.67/100) x 15000 = $(4,000). Therefore, Choice B is the correct answer.

In Case B, Pensacola Would Record a Gain/(loss) Of