Question

Crosby purchased 200 shares of Nash, Inc. Common stock on November 13, 2008, for $3,400 and paid a $200 commission. On December 28, 2008, Crosby received a $2 per share cash dividend from Nash. On June 17, 2009, Nash declares and distributes a 2 for 1 stock split. On August 4, 2009, Crosby purchased an additional 300 shares of Nash, Inc. Common stock for $4,200 plus a $300 commission. On November 22, 2009, Crosby sells 500 shares of Nash, Inc. stock for $6,000 and pays a $400 commission on the sale. Crosby’s gain(loss) on the sale is

Answer 1

Cost of Share Calculation Nov. 13.2008 Purchases 3400 + 200 = 3600 Dec. 28, 20 of June 17, 2009 Dividend Receved. (-) Yoo . (200 x 2 No Effect of Share split on cost Additional purchase. 4200+300= 4500 Cost of shares 7700 Selling of 500 Shares. 6000 - 400 = 5600 Aug 4, 2009 . Nov. 22, 2009 loss on sales of Shares. 2100