Question

Required information [The following information applies to the questions displayed below]

The following transactions apply to Park Company for Year 1:
Received ($50,000) cash from the issue of common stock.

Answer 1

To find the net profit from stock transactions for Nike, Panda Express, and Wal Mart, calculate the difference between the selling price and the purchase price, minus transaction fees, for each stock. Capital gain is the increase in value of the stock between purchase and sale.

Step-by-step explanation:

The subject pertains to calculating the net profit from stock transactions. To calculate the net profit from each stock transaction, you subtract the initial purchase cost and any transaction fees from the total sale proceeds. Here are the detailed calculations:

For Nike: (1000 shares * $39.75 current price) - (1000 shares * $24.50 purchase price) - $9.99 transaction fee = Net profit

For Panda Express: (800 shares * $23.25 current price) - (800 shares * $13.50 purchase price) - $10 transaction fee = Net profit

For Wal Mart: (1200 shares * $58.75 current price) - (1200 shares * $35.50 purchase price) - $12.99 transaction fee = Net profit

Each net profit figure would need to be calculated individually to determine the total capital gain from these investments. The concept of capital gain refers to the increase in the value of common stock or any asset between the time it is purchased and when it is sold.