Mary Smith purchased 100 shares of Johnson electronics four years ago at $15.00 each.She paid a $30 commission on this transaction.She has decided to sell these shares at $25.00 each and will incur a $25 commission on this sale.What is the amount of her capital gain?

Question

Quizplus · Accepted Answer

Mary's initial cost = (100 shares * $15) + $30 commission = $1,500 + $30 = $1,530. Sale proceeds = (100 shares * $25) - $25 commission = $2,500 - $25 = $2,475. Capital gain = Sale proceeds - Initial cost = $2,475 - $1,530 = $945.

Mary Smith Purchased 100 Shares of Johnson Electronics Four Years