Question

Chrissy receives 200 shares of Chevron stock as a gift from her father. The stock cost her father $9,000 10 years ago and is worth $10,500 at the date of the gift. a. If Chrissy sells the stock for $12,500, calculate the amount of the gain or loss on the sale. $fill in the blank 515f94001054022_1 b. If Chrissy sells the stock for $4,600, calculate the amount of the gain or loss on the sale. $fill in the blank a9ba28057f9604d_1

Answer 1

Answer:

A. $3,500 gain

B. -$4,400 loss

Explanation:

A. Calculation for the amount of the gain or loss on the sale

Gain or loss on sale=$12,500-$9,000

Gain or loss on sale=$3,500 gain

Therefore the amount of the gain on the sale is $3,500

B.Calculation for the amount of the gain or loss on the sale

Gain or loss on sale=$4,600-$9,000

Gain or loss on sale=-$4,400 loss

Therefore the amount of the loss on the sale is

-$4,400 loss