Edward Purchased Stock Last Year as Follows In April of This Year,Edward Sells 80 Shares for $250

question 86

Multiple Choice

Edward purchased stock last year as follows: $$\begin{array} { | l | c | r | } \hline \text { Month } & \text { Shares } & \text { Total Cost } \\\hline \text { March } & 100 & \$ 270 \\\hline \text { July } & 200 & 600 \\\hline \text { October } & 600 & \$ 1,200 \\\hline\end{array}$$ In April of this year,Edward sells 80 shares for $250.Edward cannot specifically identify the stock sold.The basis for the 80 shares sold is

• A)$160.
• B)$184.
• C)$216.
• D)$240.

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Definitions:

Revenues

The total amount of money generated by the sale of goods, services, or other income for a company before any expenses are deducted.

Equity

The value of an asset after deducting the amount of all liabilities on that asset, representing an owner's interest in a company.

Expenses

Costs incurred by a business in the process of earning revenue, including costs such as rent, utilities, and salaries.

Equity

The remaining interest in a company's assets after all debts are subtracted, signifying the owner's stake in the business.