If you purchased 10 shares of Goldman Sachs stock for $1,200 five years ago and decide to sell the stock today at a price of $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%.

Question

Quizplus · Accepted Answer

The capital gain per share is $300 ($1,500 - $1,200), so for 10 shares, the total capital gain is $3,000. At a 15% tax rate, the capital gains tax owed is $450 ($3,000 * 15%).

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