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Diana bought 1,500 shares of Dalton Protection, Inc., common stock for $10 per share. She paid...

Diana bought 1,500 shares of Dalton Protection, Inc., common stock for $10 per share. She paid her broker a $300 commission to close the purchase. The following year, Diana sold 1,000 of the shares for $17 per share and paid a commission of $175 on the sale. What is Diana's capital gain on the sale of the stock?

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Answer #1

Calculation of Capital Gain on sale of stock:
Gain on shares = ($17 - $10) * 1000 shares = $7,000
Less: Commission on purchase ($300 * 1000 / 1500 ) = $200
Less: Commission on sale = $175
Net Capital Gain on stock sale = $6,625

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