Question

13. Lana sold the following securities. Security Date of Purchase Date Sold Number of Shares 1. Stock #1 05/30/2011 08/25/2019 200 2. Stock #2 01/17/2012 09/30/2019 400 3. Stock #3 10/30/2014 08/25/2019 100 4. Stock #4 08/25/2014 08/28/2019 96 We will use the information from Question 12 to help us solve this question. The gross proceeds for stocks #1 and #3 were $8.975. The sales price per share for stocks #3 and 14 was $38 per share. The total gross proceeds from stock sales for 2019 was $20,000. Determine the sales price per share of the stock purchased on 1/17/2012 a) $38.00 b) $22.23 c) $25.13 d) $18.44

Answer 1

Solution to question 12:-

Gross proceed from Stock #1 and #3 were $8,975

Now, Number of shares * Sales price per share= Gross proceeds from each stocks

So, (200* Sales price per share #1) + (100*$38 per share)= $8,975

By calculating, we get

(200* Sales price per share #1) + $3,800 = $8,975

Sales price per share #1= $(8975- 3800) / 200 = $12.9375 per share

Therefore, sales Price of the stock purchased on 05/30/2011(Stock #1)= 200*12.9375

= $5,175 (Option b).....answer

Solution to question 13 (based on question 12 data):-

Gross proceeds from Stock #4 = Number of shares * Sales price per share

= 96*38= $3,648

Gross proceed from Stock #1 and #3=  $8,975 (given in the question)

Total Gross proceed from Stock sales for 2019 = $20,000

Gross proceeds from Stock #2= (Total Gross proceed from Stock sales for 2019-Gross proceed from Stock #1 and #3-Gross proceed from Stock #4)

= $(20,000- 8,975-3,648)

= $7,377

Therefore, sales Price per share of the stock purchased on 1/17/2012(Stock #2)= $7,377 / 400

= $18.44 per share (Option d)....answer