You just sold 200 shares of Langley at a price of £38.75 a share.Last year you paid £41.50 a share to buy this equity.Over the course of the year, you received dividends totaling £1.64 per share.What
Is your capital gain on this investment?
A)-£550
B)-£222
C)-£3
D)£550
E)£878

Question

Quizplus · Accepted Answer

The capital gain (or in this case, loss) is calculated by subtracting the purchase price from the selling price, then adjusting for dividends received. Here, the calculation is (38.75 - 41.50) * 200 + (1.64 * 200) = -550. This represents a capital loss, not a gain.

You Just Sold 200 Shares of Langley at a Price