Marc purchased 100 shares of LXM stock for $25 per share and sold this same stock two years later for $28 per share.He paid commissions of $50 when he purchased the stock and $55 when he sold the stock.No dividends were paid during the period he owned LXM.Marc's current income from this investment is ____,and his capital gains were ____.
A)$0; $195
B)$0; $300
C)$195; $0
D)$300; $0

Question

Quizplus · Accepted Answer

Marc's current income from the investment is $0 because no dividends were paid. His capital gains were $195, calculated as follows: [(100 shares * $28) - $55 selling commission] - [(100 shares * $25) + $50 buying commission] = $2800 - $55 - $2500 - $50 = $195.

Marc Purchased 100 Shares of LXM Stock for $25 Per