Question

Joel purchased 100 shares of stock for ​$20 per share. During the​ year, he received dividend checks amounting to ​$150. Joel recently sold the stock for ​$32 per share. Joel is in a 25​% tax bracket. What amount of taxes will he pay on his capital gain if he held the stock for less than a​ year?

Answer 1

Answer:

$337.50

Explanation:

Total purchase price= 100 * $20= $2000

Total selling price= 100 x $32= $3,200

Dividend= $150

A capital gain is an increase in the value of an asset or investment resulting from the price appreciation of the asset or investment

Capital gain = Total selling price + dividend - Total purchase price

Capital gain = $3,200 + $150- $2,000

Capital gain= $1350

Tax is for 25%

25/100 x $1350

= $337.50