If a Stock Was Purchased for $3000 in January 2003

question 72

Multiple Choice

If a stock was purchased for $3000 in January 2003 and is sold in June 2003 for $4000,what is the taxable result?

• A)Capital gain of $1000 and taxable income of $500
• B)Business income of $1000 and taxable amount of $1000
• C)Capital gain of $1000 and taxable income of $1000
• D)Taxable capital gain of $1000

Recognize the influence of cultural differences on attribution and person perception.

Understand the classification of individuals into in-groups and out-groups and its effects on social cognition.

Understand the relationship between the supply of loanable funds and its impact on interest rates, net capital outflow, and exchange rates.

Identify and explain the effects of changes in investment desirability on the economy.

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Definitions:

Decision

The choice made between two or more alternatives, often in a business or strategic context, that affects the course of action.

Relevant

Pertaining to information or factors that are applicable and significant to a specific decision or situation.

Alternatives

Different options or strategies considered in decision-making processes or problem-solving situations.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and therefore should not factor into future decisions.