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Corporate Finance

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Computation of Capital Gains Tax

CORPFN-7NRDXE

You buy 100 shares of stock at \$40. A year later you sell the stock at \$50. There is $10 flat rate commission on both buying and selling. Your tax rate is 35%.

How much do you owe in capital gains tax?

A

$350

B

$980

C

$343

D

$347