Suppose you purchased 100 shares of stock in 2016 for $25 a share and you sell them today for $30 a share. If the capital gains tax is 30 percent, your tax liability is

Question

Quizplus · Accepted Answer

The gain per share is $5 ($30 - $25), and the total capital gain is 100 shares × $5/share = $500. The capital gains tax is 30 percent, so the tax liability is $500 × 30% = $150. Therefore, the answer is B.

Suppose You Purchased 100 Shares of Stock in 2016 for $25