Problem 17

Intro

An investor has a portfolio of 20,000 shares in Apple and 15,000 shares in Toyota. During the year, the investor sold all of the shares in Apple at a price of $42 and all of the shares in Toyota at a price of $18. The shares of Apple were originally purchased for $38 and the shares of Toyota were originally bought for $13.

Attempt 1/10 for 10 pts.

Part 1

How much does the investor owe in taxes if the tax rate on capital gains is 20%?