Harvey, a U.S. taxpayer, purchased 10 shares of MVC stock for $100 per share; one year later he sold the 10 shares for $130 a share. Over the year, the price level increased from 140.0 to 147.0 . What is Harvey's before-tax real capital gain?
a. $1,300 - $1,000(1.05) and this is the gain he is to report on his income tax
b. $1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax
c. $1,300 - $1,000(1.07) and this is the gain he is to report on his income tax
d. $1,300 - $1,000(1.07) but he is to report a $300 gain on his income tax
b
Economics
You might also like to view...
If regulations create barriers to entry in an industry, the result can be _____
a. efficiency b. monopoly c. monopsony d. higher output
Economics
A competitive firm facing a perfectly elastic demand curve can: a. increase price without losing any sales
b. sell all of its output at any price it chooses. c. sell all of its output at the market price. d. sell more output only by reducing its price.
Economics