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klio [65]
2 years ago
13

Peter buys 1000 shares of Sunshine Corporation stock in 2008 at $2 a share. In 2010 the stock is doing great, Peter decides to s

ell and use the money towards a new car. He sells the Sunshine Corporation stock for $10 a share. Peter has a 25% ordinary tax rate, and a 15% capital gains tax rate. How much will Peter owe in taxes on this stock sale?
Mathematics
1 answer:
krok68 [10]2 years ago
4 0

Bought: 1,000 x $2 each = $2,000

Sold: 1,000 x $10 = $10,000

Profit = 10,000 - 2,000 = $8,000

Ordinary tax rate is used if they held the stocks for less than 1 year.

Since he had the stocks for 2 years only capital gain tax is used.

Capital gains tax is on the profit:

8,000 x 0.15 = 1200

Total taxes =  $1,200

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1 year ago
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Answer:

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1 year ago
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kicyunya [14]
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What would the graphs look like?

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In the second case, x has to be greater than 15 or less than -13.  Draw an arrow from x=1 to the left, and then draw a separate arrow from 15 to the right.  None of the values in between are solutions.

4 0
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