In 2016 Glen received a gift of 200 shares of common stock. The stock was worth $8000 when he received it. The donor had originally paid 10,000 for the stock when he bought it in 2014.

If Glen sells the stock for $12,000 2017 what is his capital gain?

A. $0

B. $2000

C. $4000

D. $12,000

Question

Business

Robert Richards

4 October, 10:14

In 2016 Glen received a gift of 200 shares of common stock. The stock was worth $8000 when he received it. The donor had originally paid 10,000 for the stock when he bought it in 2014.

If Glen sells the stock for $12,000 2017 what is his capital gain?

A. $0

B. $2000

C. $4000

D. $12,000

+3

Answers (1)

Know the Answer?

Harper Lang · Answer 1

correct option is B. $2000

Explanation:

given data

stock worth = $8000

donor originally paid = 10,000

Sale price of stock = $12,000

solution

we get here capital gain that is express as

capital gain = Sale price of stock - donor originally paid ... 1

put here value we get

capital gain = $12000 - $10000

capital gain = $2000

so correct option is B. $2000

In 2016 Glen received a gift of 200 shares of common stock. The stock was worth $8000 when he received it. The donor had originally paid 10,000 for the stock when he bought it in 2014.If Glen sells the stock for $12,000 2017 what is his capital gain?A. $0B. $2000C. $4000D. $12,000

In 2016 Glen received a gift of 200 shares of common stock. The stock was worth $8000 when he received it. The donor had originally paid 10,000 for the stock when he bought it in 2014.

If Glen sells the stock for $12,000 2017 what is his capital gain?

A. $0

B. $2000

C. $4000

D. $12,000