Lamont bought a share of stock in the ABC Corporation for $50. When he sold the stock later that year, he received $70. The par value of the stock is $5. Lamont's capital gain is $25.

Question

Quizplus · Accepted Answer

Lamont's capital gain is calculated as the selling price minus the purchase price, which is $70 - $50 = $20. The par value of the stock is not relevant to determining his capital gain.

Lamont Bought a Share of Stock in the ABC Corporation