Gregory bought a share of stock in the Marshall Manufacturing for $70. When he sold the stock later that year, he received $90. The par value of the stock is $5. Gregory capital gain is $25.

Question

Gregory bought a share of stock in the Marshall Manufacturing for $70. When he sold the stock later that year, he received $90. The par value of the stock is $5. Gregory capital gain is $25.

Quizplus · Accepted Answer

Gregory capital gain is the difference between his purchase price of $70 and his net selling price of $90. His capital gain, therefore, is $20.

Gregory Bought a Share of Stock in the Marshall Manufacturing