Ami Purchased 100 Shares of Stock for $10,000

Multiple Choice

Ami purchased 100 shares of stock for $10,000.A year later the stock is valued at $18,000.Instead of selling the stock,Ami held onto it for another year.Which of the following is TRUE?

A) The $8,000 increase in the value of the stock represents an unrealized capital gain.
B) The $8,000 increase in the value of the stock represents a dividend.
C) To determine the capital gain,it is first necessary to know the normal rate of return on capital.
D) none of the above