Question

Three years ago you purchased a share of CompUTech stock for $32, which you could sell today at the current market price of $252. What would be your capital gain on the sale, ignoring commissions?
A) $32
B) $220
C) $252
D) $284

Answer 1

Answer:

The correct answer is b) $ 220.

Explanation:

This question requires us to calculate gain on disposal of capital asset. The gain can be calculated by subtracting cost at which asset was acquired from the price at which the asset is sold. The detail calculation is given below.

Sale price          $ 252

cost                   ($   32)

profit                 $ 220