Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You bought 1,000 shares of Stephen Co at the end of 2020 at $ 20 per share and in March 2021 you decided to sell
You bought 1,000 shares of Stephen Co at the end of 2020 at $ 20 per share and in March 2021 you decided to sell all your shares. The total market value of Stephen and Co common equity when you sold your shares was $ 40,000,000. Your total capital Gain in this transaction is:
Select one:
a. $ 1,800
b. $ 2,000
c. $ 2,300
d. $ 2,700
e. none of the above
Stephen and Co issued Ncommon shares as an IPO at $ 10 per share in 2016. One year later, it issued 20% (0.2 N ) more common at $ 12.50 per share. At the end of 2018, a third issue was made at $ 15 per share and the number of shares issued was 25% of the total shares issued prior to this launch. Since then, no more new shares were issued. Per the end of 2020 balance sheet, common shares were valued at $ 20,000,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started