E. When shares of stock held as an investment are sold, the difference between the proceeds...

 

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E. When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a(n) 1. prior period adjustment 2. operating income and losses 3. paid-in capital addition 4. gain or loss F. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale? 1. $12,750 gain 2.$600 gain 3. $600 loss 4. $9,250 loss E. When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a(n) 1. prior period adjustment 2. operating income and losses 3. paid-in capital addition 4. gain or loss F. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale? 1. $12,750 gain 2.$600 gain 3. $600 loss 4. $9,250 loss

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Answer of E Investment in stock at the end of a year is shown in the balance sheet a... View the full answer