Norbert Purchased 100 Shares of Gentech Stock for $200 Per

Multiple Choice

Norbert purchased 100 shares of Gentech stock for $200 per share in year 1 and sold all the shares in year 2 for $220 a share. Between year 1 and year 2, the price index increased by 5 percent. The tax on capital gains is 50 percent. If the capital gains tax is on nominal gains, how much tax does Norbert pay on his gain?

A) $900
B) $950
C) $1000
D) $1050