question archive Juan purchased two shares of common stocks during the tax year in a company that markets biotech products
Juan purchased two shares of common stocks during the tax year in a company that markets biotech products
Subject:AccountingPrice: Bought3
Juan purchased two shares of common stocks during the tax year in a company that markets biotech products. Juan paid $90 for one share and paid $110 for the next share. Later in the year, the company declared a 2 for 1 common stock split. Juan’s new basis in the stock shares is: Select one: a. Average of the 4 shares at $50 a share b. Two shares at $90 a share and two shares at $110 a share c. Four shares at $200 a share d. Two shares at $45 a share and two shares at $55 a share
