Maria, an investor, holds shares of ABC Corp. She purchased 100 shares at $50 each. Later, she sold 50 shares at $70 each. After this, she purchased another 50 shares at $60 each. Finally, she sold the remaining 100 shares at $75 each. Calculate Maria's total taxable capital gain from these transactions.

Question: Maria, an investor, holds shares of ABC Corp. She purchased 100 shares at $50 each. Later, she sold 50 shares at $70 each. After this, she purchased another 50 shares at $60 each. Finally, she sold the remaining 100 shares at $75 each. Calculate Maria's total taxable capital gain from these transactions.

Answer options:

• $1,000
• $1,250 ✅ $1,500
• $2,500

Correct answer: $1,500

Explanation: First sale: 50 shares * ($70 - $50) = $1,000 capital gain. Remaining shares: 50 at $50 and 50 at $60. Average cost per share is ($5050 + $6050)/100 = $55. Second sale: 100 shares * ($75 - $55) = $2,000 capital gain. Total capital gain = $1,000 + $2,000 = $3,000. Taxable capital gain = $3,000 * 50% = $1,500.