Sharon Buys Some Common Stock in 1990 for $10,000 and Sells

question 156

Multiple Choice

Sharon buys some common stock in 1990 for $10,000 and sells it in 2000 for $15,000.During the same period, prices have risen by 75 percent.The net result of Sharon's stock purchases is that she will

• A)pay no taxes because she earned negative real capital gains.
• B)lose purchasing power and have to pay taxes anyway.
• C)earn a real capital gain of $5,000 plus 75 percent.
• D)earn a real capital gain of $15,000 minus 75 percent.

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Definitions:

Perceptual Preference

An individual's tendency to favor certain types of sensory information over others.

Social Processes

Patterns of interaction between individuals and groups that determine how societies are organized and how they function.

Olfactory Cilia

Microscopic hair-like structures located in the nasal cavity that are responsible for detecting odor molecules, playing a key role in the sense of smell.

Receptors

Proteins on or within cells that bind to specific molecules, leading to a cellular response.