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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10MC: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the...

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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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