Question

In 2010 , Joe bought 200 shares in Nikon Corp for $22.07 per share. In 2016 he sold the shares for $15.11 each. a. What was Joe's capital loss?

Answer 1

Joe's capital loss was calculated by subtracting the selling price of his shares from the purchase price, resulting in a capital loss of $1,392.00.

Step-by-step explanation:

To calculate Joe's capital loss, we need to determine the difference between the purchase price and the selling price of his shares. Joe bought 200 shares at $22.07 per share, and sold them at $15.11 each.

• Purchase price: 200 shares × $22.07/share = $4,414.00
• Selling price: 200 shares × $15.11/share = $3,022.00

Joe's capital loss is calculated as follows:

• Capital Loss = Purchase price - Selling price
• Capital Loss = $4,414.00 - $3,022.00
• Capital Loss = $1,392.00