Answer and Explanation:
Purchases:
1,000 shares * $300 per share = $300,000
750 shares * $280 per share = $210,000
a. 300,000 + 210,000 = 510,000
answer: $510,000
b.
162,500 - 500*280 = $22,500
answer: $22,500
c.
if he cannot identify the shares sold, then they are sold on a first in first out basis. So they would be from the shares bough October 3.
162,500 - 500*300 = $12,500
answer: $12,500
