Question

Mark purchased 100 shares of ABC stock for $25 per share and sold this same stock two years later for $28 per share. Be paid commissions of $50 when he purchased the stock and $55 when he sold the stock. No dividends were paid during the period he owned ABC. Mark's current income from this investment is ________, and his capital gains were __________.

Answer 1

Answer:

1. Mark's current income from this investment is $2800

2. His capital gains =sales- total cost= 2800-2605=$195

Explanation:

Step one:

Given data

Amount of shares= 100

price per share= $25

cost of shares = 100*25= $2500

commission paid= $50

commission paid after sales= $55

total cost of shares= $2500+50+55= $2605

Step two:

sale made from selling the shares= 28*100= $2800

1. Mark's current income from this investment is $2800

2. His capital gains =sales- total cost= 2800-2605=$195