cassie purchases 3000 shares at $6.75 each and sold them for $8.98 each 9 months later. Brokerage is 2%, GST (10%) applies and the investor's marginal tax rate is 40%. what is the capital gain?
+118613 cassie purchases 3000 shares at $6.75 each and sold them for $8.98 each 9 months later. Brokerage is 2%, GST (10%) applies and the investor's marginal tax rate is 40%. what is the capital gain?
This is what I think
Total cost = $${\mathtt{3\,000}}{\mathtt{\,\times\,}}{\mathtt{6.75}} = {\mathtt{20\,250}}$$
brokerage on this is $${\mathtt{0.02}}{\mathtt{\,\times\,}}{\mathtt{20\,250}} = {\mathtt{405}}$$ (My goodness that is expensive)
Total revenue = $${\mathtt{3\,000}}{\mathtt{\,\times\,}}{\mathtt{8.98}} = {\mathtt{26\,940}}$$
brockerage on this is $${\mathtt{0.02}}{\mathtt{\,\times\,}}{\mathtt{26\,940}} = {\frac{{\mathtt{2\,694}}}{{\mathtt{5}}}} = {\mathtt{538.8}}$$
Total brockerage = $${\mathtt{405}}{\mathtt{\,\small\textbf+\,}}{\mathtt{538.8}} = {\frac{{\mathtt{4\,719}}}{{\mathtt{5}}}} = {\mathtt{943.8}}$$
Capital Gain = $${\mathtt{26\,940}}{\mathtt{\,-\,}}{\mathtt{20\,250}}{\mathtt{\,-\,}}{\mathtt{943.8}} = {\mathtt{5\,746.2}}$$
In Australia the Goods and Services tax is already included in the quoted brockerage cost and I don't think there is any GST on anythihng else but I could be wrong :/ [plus of course I do not know what country you are in]
The investor's marginal tax rate is irrelevant.
+118613 cassie purchases 3000 shares at $6.75 each and sold them for $8.98 each 9 months later. Brokerage is 2%, GST (10%) applies and the investor's marginal tax rate is 40%. what is the capital gain?
This is what I think
Total cost = $${\mathtt{3\,000}}{\mathtt{\,\times\,}}{\mathtt{6.75}} = {\mathtt{20\,250}}$$
brokerage on this is $${\mathtt{0.02}}{\mathtt{\,\times\,}}{\mathtt{20\,250}} = {\mathtt{405}}$$ (My goodness that is expensive)
Total revenue = $${\mathtt{3\,000}}{\mathtt{\,\times\,}}{\mathtt{8.98}} = {\mathtt{26\,940}}$$
brockerage on this is $${\mathtt{0.02}}{\mathtt{\,\times\,}}{\mathtt{26\,940}} = {\frac{{\mathtt{2\,694}}}{{\mathtt{5}}}} = {\mathtt{538.8}}$$
Total brockerage = $${\mathtt{405}}{\mathtt{\,\small\textbf+\,}}{\mathtt{538.8}} = {\frac{{\mathtt{4\,719}}}{{\mathtt{5}}}} = {\mathtt{943.8}}$$
Capital Gain = $${\mathtt{26\,940}}{\mathtt{\,-\,}}{\mathtt{20\,250}}{\mathtt{\,-\,}}{\mathtt{943.8}} = {\mathtt{5\,746.2}}$$
In Australia the Goods and Services tax is already included in the quoted brockerage cost and I don't think there is any GST on anythihng else but I could be wrong :/ [plus of course I do not know what country you are in]
The investor's marginal tax rate is irrelevant.
