Question
In January 2015, Carnivorous Corp. purchased 600 shares of Herbivore Inc. for $ 50 per sare, intending to hold the shares for two years. In
In January 2015, Carnivorous Corp. purchased 600 shares of Herbivore Inc. for $ 50 per sare, intending to hold the shares for two years. In April 2016, the FMV of the portfolio was $ 35,000. In August 2016, the portfolio was valued at $ 36,500. In March 2017, Carnivorous decided to sell 300 of the Herbivore shares for $ 65 per share. What will be the realized gain that Carnivorous will record as a result of the sale?
A. $950
B. $ 1,500
C. $ 4,500
D. $ 5,000
Step by Step Solution
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To calculate the realized gain you need to find the differ...
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
