If a taxpayer buys a bundle of 100 shares at $2 each and then sells 50 of them a year later for $3, they have realised a capital gain of:

Question

Quizplus · Accepted Answer

The taxpayer bought 100 shares for $2 each, so the total cost of the shares was $200. They then sold 50 shares for $3 each, so the total proceeds from the sale were $150. The capital gain is the difference between the proceeds from the sale and the cost of the shares, which is $150 - $200 = -$50. However, capital gains are always positive, so the taxpayer has realized a capital gain of $50.

If a Taxpayer Buys a Bundle of 100 Shares at $2