Question

Eliana purchased 250 shares of Moonoco Ind. at $78 per share. Today, she sold all the shares at $62 per share. She paid no commission for either transaction. What is Eliana's capital gain or loss?

Answer 1

To determine Eliana's capital gain or loss, we need to calculate the difference between the selling price and the purchase price of the shares.

Purchase price of 250 shares = $78 x 250 = $19,500

Selling price of 250 shares = $62 x 250 = $15,500

Capital loss = Selling price - Purchase price

Capital loss = $15,500 - $19,500

Capital loss = -$4,000

Since the result is negative, it means that Eliana incurred a capital loss of $4,000 when she sold her shares.