What would be the amount of the gain or loss on the sale of the 14,000 shares?
A) A loss of $42,000.
B) A loss of $4,000.
C) A gain of $4,000.
D)A gain of $54,000.

Question

Quizplus · Accepted Answer

The correct answer is A because the company sold the shares for $14 per share, which is $2 less than the $16 per share that the company paid for the shares. Therefore, the company incurred a loss of $2 per share, or a total loss of $28,000 (14,000 shares x $2 per share).

What Would Be the Amount of the Gain or Loss