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?
+118696 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 = 3000×6.75=20250
brokerage on this is 0.02×20250=405 (My goodness that is expensive)
Total revenue = 3000×8.98=26940
brockerage on this is 0.02×26940=26945=538.8
Total brockerage = 405+538.8=47195=943.8
Capital Gain = 26940−20250−943.8=5746.2
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.
+118696 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 = 3000×6.75=20250
brokerage on this is 0.02×20250=405 (My goodness that is expensive)
Total revenue = 3000×8.98=26940
brockerage on this is 0.02×26940=26945=538.8
Total brockerage = 405+538.8=47195=943.8
Capital Gain = 26940−20250−943.8=5746.2
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.
