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

Question

Quizplus · Accepted Answer

Jane's gain is calculated as the selling price ($35,000) minus the purchase price ($20,000), which is $15,000. Since she held the stock for seven years, it is considered a long-term gain. Therefore, the correct answer is option A: $15,000 long-term gain. Options B and C are incorrect because they incorrectly describe the nature of the gain, and option D is incorrect because Jane did experience a gain.

Jane Purchased General Motors Stock Seven Years Ago for $20,000