Question

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

Answer 1

Answer:

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