Jane purchased General Motors stock for $20,000. Seven years later, in 2015, she sold the stock for $35,000. What is Jane's gain or loss?

Question

Quizplus · Accepted Answer

Jane's gain is the difference between the selling price ($35,000) and the purchase price ($20,000), which is $15,000. Since the stock was held for more than one year (seven years in this case), the gain is considered a long-term gain.

Jane Purchased General Motors Stock for $20,000