00:01
Hello students, here is a question, which of the following scenario illustrates a capital gain? so, there are four scenarios given, we have to find out which suits a capital gain, which scenario brings a company to the capital gain.
00:15
So, the first is, warren was paid an extra 15 shares in a company stock at the end of second quarter based on the earning of a company posted.
00:23
So, that doesn't come under capital gain, so that doesn't suit.
00:26
When we move on to the third one, warren brought 100 shares of a stock, 10 dollars per share, he sold in 3 months for 8.
00:35
So, he brought 100 shares for 10 dollars, but he sold for 8 dollars.
00:45
So, 100 into 10 will be 1000, 100 into 8 will be 800.
00:51
So, there will be a loss of 200, not the gain.
00:56
So, this also doesn't suit for the capital gain.
00:59
When we come to the fourth, warren was paid 0 .25 shares in cash at the end of a first quarter from the earning the company has been posted.
01:13
So, this is also doesn't suit for the capital gain...