Efrain Owns 1,000 Shares of RJ Inc

question 80

Multiple Choice

Efrain owns 1,000 shares of RJ Inc.common stock which he purchased three years ago for $36,000.Efrain sells the 1,000 shares on October 15,2019,for $10,000.On November 12,he purchases 400 shares of RJ Inc.preferred stock for $8,000.Efrain's recognized loss on the sale of the 1,000 shares will be

• A)$0.
• B)$10,400.
• C)$15,600.
• D)$26,000.

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for investing in business growth.

Federal Budget

The government's estimate of revenue and spending for a specific fiscal period, detailing how public resources will be allocated.

R&D

Research and Development; activities in connection with corporate or governmental innovation aimed at discovering new knowledge and its application.

Past 50 Years

Referring to the time period extending back from the current date through the last five decades, often used to contextualize changes and developments.