On February 1, John buys 200 shares of GJF company stock for $50 per share. On August 1, John sells all 200 shares of GJF stock for $25 per share. On August 16, John buys 100 shares of GJF stock for $30 per share. How much of a loss on GJF stock may John claim for the year?
Profit/ Loss on Investment:
Loss on investment can be claimed in the year the loss on the investment is booked.
Answer and Explanation:
Loss that can be claimed by John = ($25 - $50) x 200 = $5000
Since John has sold 200 shares he can claim the loss on the same i.e. $5000 (Option D).
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from Financial Accounting: Homework Help ResourceChapter 1 / Lesson 23