You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.64 per share. What is your capital gain on this investment?

A) -$550
B) -$222
C) -$3
D) $550
E) $878

Question

Vianca Andrea · Accepted Answer

Final Answer : A, Explanation :  The capital gain (or loss) on an investment is calculated by subtracting the purchase price from the selling price, then adjusting for any dividends received. Here, the calculation is: [(200 shares * $38.75 selling price) - (200 shares * $41.50 purchase price)] + (200 shares * $1.64 dividends) = -$550. This represents a capital loss, not a gain.

You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.64 per share. What is your capital gain on this investment?

A) -$550
B) -$222
C) -$3
D) $550
E) $878

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Learning Objectives

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You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.64 per share. What is your capital gain on this investment?A) -$550B) -$222C) -$3D) $550E) $878

Definitions

Learning Objectives

Learning Objectives

Related questions

You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.64 per share. What is your capital gain on this investment?

A) -$550
B) -$222
C) -$3
D) $550
E) $878