If a Stock Was Purchased in January 2004 for $1000

question 76

Multiple Choice

If a stock was purchased in January 2004 for $1000 and sold in December 2005 for $3000,what is the taxable result?

• A)Taxable capital gain of $2000
• B)Taxable capital gain of $1000
• C)Income of $2000
• D)Annual taxable gain of $500

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Definitions:

Systematic Account

An organized method or approach to recording financial transactions or accounts that follow a consistent procedure.

Outcomes

The results or effects that stem from certain actions, processes, or behaviors.

Sales-Cost Ratio

A metric used to evaluate the effectiveness of sales efforts by comparing the cost of achieving sales to the amount of sales generated.

Overnight Trips

Short travel or journeys that involve staying away from home for one night, often for business or leisure purposes.