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25 September, 23:23

Pedro purchases 50 shares of piper company stock on february 19, 2013, at a cost of 4,300. he sells the 50 shares on july 2, 2016, for 9,000. on march 14, 2016, pedro purchases 100 shares of troxel stock for 9700. he sells the troxel shares on december 18, 2016, for 6600. what is the effect of the stock sales on pedro's 2016 income?

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  1. 25 September, 23:36
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    Total Income of Pedro from Stock Sales can be calculated as below:

    1) Gains from Piper Company

    Selling Price of Shares $9000

    Purchase Price of Shares $4300

    Net Gains from Sale of Piper $4700

    Loss From Troxel Shares

    Sale Price of Troxel $6600

    Purchase Price of Troxel $9700

    Loss From Troxel $3100

    Net Gain from Sale of Share $1600

    Thus as per above Pedros Income will increase by $1600 due to the sale of both Troxel Company and Piper Company
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