ITI 1121 Final: ITI 1121 University of Ottawa 2007 Final Exam-en
31 Jan 2019
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The context for this question is a nance software package called jstock. Corporations are raising funds by selling shares (equal portions of their capital). Collectively, the shares of a given corpo- ration is called its stock. The shares prices vary, here on a daily basis. When selling shares, the calculation of the capital gain is easy if all the shares were purchased at the same price (e. g. a single transaction). However, the computation is more complex when selling shares acquired through several transactions. In that case, standard accounting principles dictate that the oldest shares must be sold rst. For example, a shareholder purchases 100 shares at each in a rst transaction, then purchases. 20 shares at each in a second transaction, then purchases 200 shares at each in a third transaction, and then sells 150 shares at each. In that case, the capital gain is 100 (30 20) +
