You just sold 400 shares of Bosley, Inc. stock at a price of $49.60 a share. Last year you paid $50.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.96
Per share. What is your capital gain on this investment?

Question

Quizplus · Accepted Answer

To calculate the capital gain, we need to subtract the total cost of buying the shares (including the dividends received) from the total amount earned from selling the shares.

Total cost = (400 shares x $50.50 per share) + (400 shares x $1.96 per share) = $20,240

Total earnings = 400 shares x $49.60 per share = $19,840

Capital gain = Total earnings - Total cost = $19,840 - $20,200 = -$360

Therefore, the capital gain is -$360, which means that the investment resulted in a loss of $360. The answer is B.

You Just Sold 400 Shares of Bosley, Inc