A stock's price has risen due to an overall market increase. This increase in price is considered: A non-taxable capital gain A taxable capital gain An unrealized capital gain Amortization
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This means the stock price has increased because of the market's performance, not because of any specific action taken by the company. Show more…
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true or false Capitalization pertains to the adjustment of the value of an asset caused by changes in tax rates
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When someone owns an asset (such as a share of stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accrued gains are not. a. Explain how individuals' behavior is affected by this rule. b. Some economists believe that cuts in capital gains tax rates, especially temporary ones, can raise tax revenue. How might this be so? c. Do you think it is a good rule to tax realized but not accrued capital gains? Why or why not?
Which of the following scenarios illustrates a capital gain? Warren was paid an extra 15 shares in the company stock at the end of the second quarter based on the earnings the company posted. Warren bought 100 shares of stock for $10 per share. He sold the stock three months later for $12 per share. Warren bought 100 shares of stock for $10 per share. He sold the stock three months later for $8 per share. Warren was paid $0.25 a share in cash at the end of the first quarter from the earnings the company posted.
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