An investor purchased 499 shares of common stock, $24 par, for $21,457. Subsequently, 117 shares were sold for $64 per share. What is the amount of gain or loss on the sale? a.$2,457 gain b.$4,680 loss c.$2,457 loss d.$4,680 gain

An investor purchased 499 shares of common stock, $24 par, for $21,457. Subsequently, 117 shares were sold for $64 per share. What is the amount of gain or loss on the sale? a.$2,457 gain b.$4,680 loss c.$2,457 loss d.$4,680 gain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

An investor purchased 499 shares of common stock, $24 par, for $21,457. Subsequently, 117 shares were sold for $64 per share. What is the amount of gain or loss on the sale?

a.$2,457 gain
b.$4,680 loss
c.$2,457 loss
d.$4,680 gain

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