This Year Ann Has the Following Stock Transactions

question 1

Essay

This year Ann has the following stock transactions.What amount is included in her gross income if Ann paid a $200 selling commission for each sale?
$\begin{array}{c}\text { Total Purchase }\\\begin{array}{lll}\\\text { Shares}\\100 \\200 \\500\end{array}\begin{array}{lll}\\\text { Firm}\\\text { IBM}\\\text { ATT}\\\text { Dell}\end{array}\begin{array}{l}\\\text { Price }\\\$ 5,000 \\7,500 \\12,500 \end{array}\begin{array}{lll}\\\text {Sales price}\\\\9,500 \\13,000\end{array}\begin{array}{lll}\\\text {Value at year-end}\\\$ 7,00\\\\\\\end{array}\end{array}$

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Definitions:

Step-Down Method

An accounting method used to allocate service department costs to producing departments in a sequential manner, based on a hierarchy of services provided.

Support Department

Units within an organization that provide essential services or assistance to the main production or operation departments but do not directly produce revenue.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, departments, or projects.

Other Support Department

Units within an organization not directly involved in core operations but that provide essential services or support to primary operations departments.