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Author Question: Ami purchased 100 shares of stock for $10,000. A year later the stock is valued at $18,000. Instead ... (Read 43 times)

pepyto

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Ami purchased 100 shares of stock for $10,000. A year later the stock is valued at $18,000. Instead of selling the stock, Ami held onto it for another year. Which of the following is 
true?


◦ The $8,000 increase in the value of the stock represents an unrealized capital gain.
◦ The $8,000 increase in the value of the stock represents a dividend.
◦ To determine the capital gain, it is first necessary to know the normal rate of return on capital.
◦ None of these


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Marked as best answer by pepyto on Apr 19, 2019

wergv

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pepyto

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


Joy Chen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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