Based on the number of shares that Ralph Warren purchased, the total cost of the stock was $469.63. The amount he received from sales was $447.13. The capital loss was $22.50.
The cost of the stock was:
= (27 x 16³/₈) + 27.50
= $469.63
The amount received from sales:
= (27 x 17⁵/₈) - 28.75
= $447.13
This capital gain (loss):
= 447.13 - 469.63
= -$22.50
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