Question

lk bought shares worth $8,000 in a companys stock and sold the shares for a capital loss of $550. how much money did lk receive for the sold stocks? $7,450 $550 $8,000 $8,550

Explanation:

Step1: Recall capital - loss formula

The formula for capital loss is $Capital\ Loss = Cost\ Basis - Proceeds$. We know the cost basis (the amount paid for the stock) is $8000$ and the capital loss is $550$, and we need to find the proceeds (the amount received from selling the stock).
Let the proceeds be $x$. Then $550 = 8000 - x$.

Step2: Solve for the proceeds

We can rewrite the equation $550 = 8000 - x$ as $x=8000 - 550$.
$x = 7450$.

Answer:

$7450$