Abby purchased 100 shares of her dad’s favorite stock for $25.80 per share exactly 1 year ago, commission free. She sold it today for a total amount of $2865. She plans to invest the entire amount in a different corporation’s stock today, but must now pay a $50 commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax effects.
Abby purchased 100 shares of her dad’s favorite stock for $25.80 per share exactly 1 year ago, commission free. She sold it today for a total amount of $2865. She plans to invest the entire amount in a different corporation’s stock today, but must now pay a $50 commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax effects.
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 63IIP
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Question
Abby purchased 100 shares of her dad’s favorite
stock for $25.80 per share exactly 1 year ago, commission
free. She sold it today for a total amount of
$2865. She plans to invest the entire amount in a
different corporation’s stock today, but must now
pay a $50 commission fee. If she plans to sell this
new stock exactly 1 year from now and realize the
same return as she has just made, what must be the
total amount she receives next year? Include the
commission fee as a part of the purchase price, but
neglect any tax effects.
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