Harvey,a U

Multiple Choice

Harvey,a U.S.taxpayer,purchased 10 shares of MVC stock for $100 per share;one year later he sold the 10 shares for $130 a share.Over the year,the price level increased from 140.0 to 147.0.What is Harvey's before-tax real capital gain?

A) $1,300 - $1,000(1.05) and this is the gain he is to report on his income tax
B) $1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax
C) $1,300 - $1,000(1.07) and this is the gain he is to report on his income tax
D) $1,300 - $1,000(1.07) but he is to report a $300 gain on his income tax