If you purchased 10 shares of Goldman Sachs stock for $1,200 five years ago and continue to hold the stock today but its value has risen to $1,500,how much will you owe in capital gains tax on your 10 shares? Assume the tax rate on capital gains is set at 15%.

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Quizplus · Accepted Answer

The capital gains tax is calculated as follows:Capital gains tax = (Selling price - Purchase price) x Tax rateIn this case, the selling price is $1,500 and the purchase price is $1,200. The capital gains tax rate is 15%.Therefore, the capital gains tax is:($1,500 - $1,200) x 0.15 = $45

If You Purchased 10 Shares of Goldman Sachs Stock for $1,200