After Buying 100 Shares of Common Stock in the It's

question 177

Multiple Choice

After buying 100 shares of common stock in the It's All Good Corporation for $20 per share, Popeye later sold the same shares for $25 per share. Popeye's capital gain on the total transaction is:

• A) $5.
• B) $50.
• C) $500.
• D) $2,500.

---

Definitions:

Statement of Owner's Equity

A financial document that details the changes in the equity of a company over a specific period, including investments, withdrawals, and earnings.

Owner's Equity

The ownership stake of shareholders or owners in a company's assets, after all debts have been subtracted.

Transactions

Business dealings or events that affect the financial position of a company, recorded in the accounting records.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time.