Question

An investor purchased 500 shares of common stock, $25 par, for $19,250. Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?

Answer 1

$350 loss on the sale of 100 stocks

Step-by-step explanation:

the cost basis per stock = $19,250 / 500 = $38.50 per stock

then they sold 100 stocks at $35 per stock

gain/loss = (selling price per stock - cost basis per stock) x 100 stocks = ($35 - $38.50) x 100 = -$3,50 x 100 = -$350 or $350 loss