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