Question
John buys 100 shares worth $5,000. One year later, he sells the shares for $10,000. The next day he buys 100 shares back again and
John buys 100 shares worth $5,000. One year later, he sells the shares for $10,000. The next day he buys 100 shares back again and they cost him $10,100. Assuming zero allowances and a capital gains tax rate of 20%, what is John's CGT liability?
A. $1,000
B. $0
C. $20
D. $1020
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Corporate Financial Management
Authors: Glen Arnold, James Pickford
2nd Edition
0582821762, 978-0582821767
