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VARVARA [1.3K]
3 years ago
14

LeBron buys 500 shares of Tiger Corporation for $10 a share. The corporation’s president is caught committing fraud and the stoc

k drops to $3 a share. LeBron sells all his shares. How much can he take off his income as a capital loss this year?
Mathematics
1 answer:
Nataly_w [17]3 years ago
8 0

Answer:

$3,500

Step-by-step explanation:

First, Lets analyze the problem.

LeBron buys 500 shares for $10 a share. So he buys 500 shares for $5,000.

Now the price drops to $3, he had 500 stocks, the stocks are now only worth $1500.

5000-1500=3,500

He has lost $3,500 in the Tiger Corporation shares.

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