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    Jennifer_Lee's Avatar
    Jennifer_Lee Posts: 1, Reputation: 1
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    #1

    Oct 18, 2010, 06:01 PM
    Acquired 100 shares of stock in October 2007 for $707/ share?
    Live Tree also acquired 100 shares of Google stock (GOOG) in October 2007 for $707 / share. GOOG was trading at $691 / share at 12/31/07 and at $308 / share at 12/31/08. Live Tree continued to hold the shares until early December 2009 when it sold all 400 shares for $620 / share.

    a. Assuming that the investment is treated as a trading security, what is the increase (decrease) in Net Income for the year ended 12/31/09 resulting from the ownership & sale of the Google stock? Be sure to indicate Increase or Decrease along with your $ amount.

    b. Assuming that the investment is treated as an available-for-sale security, what is the increase (decrease) in Total Equity for the year ended 12/31/09 resulting from the ownership & sale of the Google stock? Be sure to indicate Increase or Decrease along with your $ amount.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 19, 2010, 06:42 AM

    What is your question? And what have you done so far?
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