Answer:
$136.64
Explanation:
Purchase price:
100shares*$17price per share
=$1,700
$1,700*.04 brokerage commission
=$68brokerage commission price
Hence:
Total cost to purchase the stock = 1700 + 68 = $1,768
Sale proceeds:
100shares*$23.50 price per share
=$2,350
$2,350*.04brokerage commission
=$94brokerage commission price
Hence:
Total proceeds from sale = 2350 – 94
= $2,256
Capital gain tax computation:
Total proceeds from sale $2,256
Less purchase price $1,768
Taxable capital gain $488
Taxable capital gain $488*.28marginal tax rate
=$136.64 capital gain tax owed
Therefore the capital gain tax owed will be $136.64
