Question

Zach bought 200 shares of Goshen stock years ago for $21.35 per share. He sold all 200 shares today for $43 per share. What was his gross capital gain?

Answer 1

Answer: 8,600

Zach's gross capital gain can be calculated as follows:

Total proceeds from selling the stock = 200 shares x $43/share = $8,600

Total cost of buying the stock = 200 shares x $21.35/share = $4,270

Gross capital gain = Total proceeds - Total cost = $8,600 - $4,270 = $4,330

Therefore, Zach's gross capital gain from selling 200 shares of Goshen stock is $4,330.

Answer 2

Zach's gross capital gain is calculated as the difference between the selling price and the purchase price, multiplied by the number of shares sold:

Gross capital gain = (selling price - purchase price) x number of shares sold

The purchase price was $21.35 per share, and he bought 200 shares, so the total purchase price was:

Purchase price = $21.35 x 200 = $4,270

The selling price was $43 per share, and he sold all 200 shares, so the total selling price was:

Selling price = $43 x 200 = $8,600

Therefore, the gross capital gain is:

Gross capital gain = ($8,600 - $4,270) x 200 = $8,6600

So Zach's gross capital gain from selling his 200 shares of Goshen stock is $8,6600.