Question

Bridget purchased the following shares of xyz stock:

50 shares for $1,500 in 2013.

75 shares for $2,000 in 2014.

85 shares for $2,750 in 2015.

She sold 130 shares of xyz in 2017 and did not identify which shares she sold. What basis should she use for computing gain or loss?

a) $3,662

b) $3,858

c) $3,869

d) $3,950

Answer 1

	Correct answer is: (a) $3,662
	Workings:
	Computation of cost of shares sold:
Year	Number of shares	Amount
2017	First 50 for	$    1,500
	Next 75 for	$    2,000
	Remaining 5 for [ 5 X ($2,750/85)]	$        162
	Total cost of shares sold	$    3,662