FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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When you bought 300 shares of Tesla at $100/ share and 3 years later it is trading at $150/share and you are still holding
onto it, hoping it may still increase in value; So you have not sold it yet in anticipation of the stock price rising even
higher, what is your tax liability in year 3
O The difference between where you bought it and where it is currently trading
O The $50 gain times the 300 shares you are holding
O It depends on what happened in year 2
O None
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Transcribed Image Text:When you bought 300 shares of Tesla at $100/ share and 3 years later it is trading at $150/share and you are still holding onto it, hoping it may still increase in value; So you have not sold it yet in anticipation of the stock price rising even higher, what is your tax liability in year 3 O The difference between where you bought it and where it is currently trading O The $50 gain times the 300 shares you are holding O It depends on what happened in year 2 O None
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