FMT8 Problem: Capital Gains - Magma Corporation

FMT8 Problem: Capital Gains - Magma Corporation

In 20x9, Magma Corp. disposed of two investments. Stock A was sold for $500,000 and cost

$345,000. Stock B was purchased for $195,000 and was sold for $150,000. The investments

were held as capital property. Magma Corp. paid $5,000 to a broker to dispose of each

investment.

Required:

Calculate the capital gain or loss for 20x9.