Question

Bob likes to buy and sell things. Assume Bob made the following transactions: he bought an antique for $300 and sold it for $500; he bought shares of stocks for $1,000 and sold the shares for $500; and he bought a car for $9,500 and sold it for $9,800. Overall, Bob:______.A. Made a gain.B. Incurred a loss.C. Broke even.D. Earned a $200 dividend.

Answer 1

Answer:

Broke even

Explanation:

Since it is given that

The antique bought at $300 and it sold for $500 so it reflects the profit of $200 as sale price is more than the purchase price

The shares of stock bought for $1,000 and it sold for $500 that reflects the loss of $500 as purchase price is more than the sale price

Now if the car is bought for $9,500 and the car sold for $9,800 that reflects the profit of $300  as sale price is more than the purchase price

So, the total profit is $500 and the total loss is $500.

Therefore, this is a break even where there is no loss or no gain