Question

Lesley purchased 250 mutual fund shares at $18 per share. Lesley decided to sell her shares after the price increased to $29 per share. What is Lesley's capital gain?

Answer 1

Lesley's capital gain from selling her 250 mutual fund shares is $2750, calculated by subtracting the purchase price per share from the selling price per share and then multiplying by the total number of shares.

Step-by-step explanation:

Lesley purchased 250 mutual fund shares at $18 per share. The capital gain is calculated by finding the difference between the selling price and the purchasing price. Lesley sold her shares at $29 per share.

To calculate the capital gain:

• Capital gain per share = Selling price per share - Purchase price per share
• Capital gain per share = $29 - $18
• Capital gain per share = $11

Now, we multiply this figure by the total number of shares sold to find the total capital gain:

• Total capital gain = Capital gain per share × Number of shares
• Total capital gain = $11 × 250
• Total capital gain = $2750