Mike purchased a 1968 Chevy Corvette in 2009 for $30,000 and a year later he sold it for $36,000. Due to these transactions
A) Mike earned a capital loss of $6,000.
B) Mike earned a dividend of $36,000.
C) Mike earned a dividend of $600.
D) Mike earned a capital gain of $6,000.

Question

Quizplus · Accepted Answer

Mike earned a capital gain of $6,000 because he sold the Corvette for $6,000 more than he paid for it.

Mike Purchased a 1968 Chevy Corvette in 2009 for $30,000