Harvey,a U

question 56

Multiple Choice

Harvey,a U.S.taxpayer,purchased 10 shares of MVC stock for $100 per share;one year later he sold the 10 shares for $130 a share.Over the year,the price level increased from 140.0 to 147.0.What is Harvey's before-tax real capital gain?

• A)$1,300 - $1,000(1.05)and this is the gain he is to report on his income tax
• B)$1,300 - $1,000(1.05)but he is to report a $300 gain on his income tax
• C)$1,300 - $1,000(1.07)and this is the gain he is to report on his income tax
• D)$1,300 - $1,000(1.07)but he is to report a $300 gain on his income tax