Question On August8, 2007, ZZ, Inc. purchased 5,000 shares of EZ Company stock f

Question

Question

On August8, 2007, ZZ, Inc. purchased 5,000 shares of EZ Company stock for$18 per share. The
following information relates to the EZ Company stock:

? EZCompany paid a dividend of $2 per share on October 1, 2007

? The EZCompany stock was valued at $15 per share on December 31, 2007

? ZZ, Inc.sold 3,000 shares of the EZ Company stock for $22 per share on May18, 2008

? EZCompany paid a dividend of $2 per share on October 1, 2008

? The EZCompany stock was valued at $19 per share on December 31, 2008

Question

Explanation / Answer

purchase of the 5000 shares is at $18 per share : there was a realized gain of 12000 on the sale of 3000 shareson May 18 2008 : we now have 2000 shares remaining @ 18 /share : so our unrealized gain is 2000 @ (19-18)=$1=$2000

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.