During 2019, Hilary purchased three blocks of Red Company common stock: March 1, 100 shares at $50/share
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Question:
During 2019, Hilary purchased three blocks of Red Company common stock:
- March 1, 100 shares at $50/share
- June 15, 100 shares at $55/share
- October 1, 100 shares at $60/share
In January 2021, Hilary sold 200 shares of Red Company stock at a price of $70 per share. Hilary did NOT specifically identify the shares of stock sold. Which cost flow assumption will be used to determine the cost basis for measuring Hilary’s gain on the sale?
Weighted Average
Specific Identification
LIFO
FIFO
Expert Answer:
Since Hilary did NOT specifically identify the shares of stock sold Weighted Average method shou... View the full answer
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