Over the Past 20 Years, Alfred Has Purchased 380 Shares

question 232

Multiple Choice

Over the past 20 years, Alfred has purchased 380 shares of Green, Inc., common stock. His first purchase was in 1995 when he acquired 30 shares for $20 a share. In 2002, Alfred bought 150 shares at $10 a share. In 2017, Alfred acquired 200 shares at $50 a share. Alfred intends to sell 125 shares at $60 per share in the current year (2018) . If Alfred's objective is to minimize gain and assuming he can adequately identify the shares to be sold, what is his recognized gain?

• A) $1,250
• B) $3,520
• C) $5,950
• D) $6,250
• E) None of the above

Identify and correct examples of faulty parallelism in sentences.

Choose appropriate word or phrase to complete a sentence based on context.

Correctly apply principles of subject-verb agreement.

Correctly apply principles of pronoun-antecedent agreement.

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not included in cash equivalents.

Direct Method

A cash flow statement presentation method that shows the specific sources and uses of cash, detailing actual cash received and paid.

Cash Payments

Cash payments refer to transactions where cash is used to settle the amount owed for goods or services.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, usually one year.