If the Shares of Stock Sold or Exchanged Are Not

question 132

True/False

If the shares of stock sold or exchanged are not specifically identified,the average cost method of identification must be used.

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Definitions:

Enforceable

Capable of being imposed or carried out by legal action or authority; describes a rule, contract, or law that can be legally upheld.

Bargained For

In contract law, referring to an exchange that parties agree upon, which forms the basis for a legally enforceable contract.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Reasonable Amount

An amount that is fair and moderate, not excessive or extreme.