Pedro purchases 50 shares of piper company stock on february 19, 2013, at a cost of 4,300. he sells the 50 shares on july 2, 2016, for 9,000. on march 14, 2016, pedro purchases 100 shares of troxel stock for 9700. he sells the troxel shares on december 18, 2016, for 6600. what is the effect of the stock sales on pedro's 2016 income?

Total Income of Pedro from Stock Sales can be calculated as below:

1) Gains from Piper Company

Selling Price of Shares                                 $9000

Purchase Price of Shares                             $4300

Net Gains from Sale of Piper                                                        $4700

Loss From Troxel Shares

Sale Price of Troxel                                     $6600

Purchase Price of Troxel                            $9700

Loss From Troxel                                                                        $3100

Net Gain from Sale of Share                                                       $1600

Thus as per above Pedros Income will increase by $1600 due to the sale of both Troxel Company and Piper Company

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rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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