On February 15, Seacoft buys 7000 shares of Kebo common stock at $28.53 per shar

Question

On February 15, Seacoft buys 7000 shares of Kebo common stock at $28.53 per share plus a brokerage fee of $400. The stock is classified as available for sale securities. On March 15, Kebo declares a dividend of $1.15 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 15 and ultimately dells half of the Kebo stock on November 17 of the current year for $29.30 per share less a brokerage fee of $250.The fair value of the remaining in the equity section of its year end December 31 balance sheet for its investment in Kebo is:


A)$10295
B)$8050
C)$2245
D)$3195
E)$6390

I have tried EVERYTHING, and still can not figure this problem out. I have gotten close, but not exact.

Please let me know how I come about this answer. Any help is very much appreciated

Explanation / Answer

Common stock at $28.53 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.15 per share. Ok so 28.53 times amount of share you have 7000 28.53(7000)= 199,170 Minus the fees 400 =199,310 Original cost She gets a dividend of $1.15 per share So 7000(1.15) =$8050 profit (not the final answer) She then sells half of the stock 7000/2 =3500 shares sold She sold 3500 for $29.30 so .77 profit. 35000 times .77 = $2695 -250 for the fee profit on the stock she sold. =$2445 (not final answer) FINAL Answer= $8050 + $2445 A)$10295 Answer: A)$10295

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