Question

Susan bought some land. She sold it for $3,000 more than she paid for it. The $3,000 is an example of _____.

-dividends
-interest
-rent
-capital gains

Answer 1

-capital gains

Step-by-step explanation:

Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.