You Bought Stock in 2010 for $100 and You Sold

question 130

Multiple Choice

You bought stock in 2010 for $100 and you sold it in 2012 for $200.You used a broker to sell the stock for you,and he charged you $20.This transaction contributed ________ to GDP.

• A) $200
• B) $20
• C) $220
• D) $100
• E) $120

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Definitions:

Amended Returns

The process of revising previously submitted tax returns to correct any errors or include new information.

Loss

The result when an entity's expenses exceed its revenues, leading to a negative net income or deficit in its financial results.

Tax Liability

The amount of tax owed to the government by an individual, corporation, or other entity in a specific period.

Taxable Income

The amount of income that is subject to income tax after all deductions and exemptions.