During 2006,Charles Purchased 1,000 Shares of Ryan Corporation Stock for $12,000.On

question 63

Multiple Choice

During 2006,Charles purchased 1,000 shares of Ryan Corporation stock for $12,000.On February 22,2016,he sells all the shares for $9,000.On March 15,2016,he repurchases 1,000 shares of Ryan for $8,000 and holds them until May 29,2016,when he sells them for $10,000.What is Charles' recognized gain or loss on the May 29,2016,sale?

• A)$1,000 loss.
• B)$2,000 gain.
• C)$2,000 loss.
• D)$1,000 gain.
• E)No gain or (loss) recognized

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Definitions:

Credit Sales

Credit sales are transactions where the exchange of goods or services is made on the promise of future payment.

Cash Expenditures

Outflows of cash for expenses or investments, often tracked to monitor financial health and cash management.

Monthly Ending Inventories

The quantities and valuation of goods available for sale or use, recorded at the end of each month.

Budgeted Production

The estimated amount of goods that a company plans to produce in a certain period, used in planning and cost control.