Reporting the purchase and sale of stocks and bonds

Purchase of additional stock:

If the estate owned 2000 shares of ACME Stocks at an acquisition value of $1.00 per share at the beginning of the reporting period and then purchased an additional 1000 shares at $.50 per share during the reporting period, you would make two separate entries:

• The first is ACME Stocks with an acquisition value of $2000 (2000 X $1 = $2000).
• The second is ACME Stocks with an acquisition value of $500 (1000 X $.50 = $500).

Sale of stock:

If the estate owned 2000 shares of ACME Stocks at a value of $1.00 per share at the beginning of the reporting period and sold 500 shares at $2.00 a share during the reporting period, you would make two separate entries:

• The first is ACME Stocks with an acquisition value of $1500. These are the stocks remaining in the estate. (2000 - 500 = 1500. 1500 X $1 = $1,500).
• The second is ACME Stocks with an acquisition value of $500. These are the stocks being sold. Even though the estate has sold them for $2 a share, the acquisition value is $1 a share. (500 X $1 = $500).