# On February 1, John buys 200 shares of GJF company stock for $50 per share. On August 1, John... ## Question: 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?

A: None

B: $2,500 C:$3,000

D: $5,000 E:$6,000

## 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).