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Ractice

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Which of the following is an example of earning income from capital gains?
a. hourly employee earning $17 per hour
b: salaried employee earning $56,000 per year
c. selling stocks and making a profit of $3,000
d. buying a car for a total of $5,000
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1 Answer

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Final answer:

Selling stocks and making a profit is an example of earning income from capital gains.


Step-by-step explanation:

An example of earning income from capital gains is selling stocks and making a profit of $3,000. When a person invests money in stocks, they hope that the value of those stocks will increase over time. If the person sells the stocks at a higher price than what they initially bought them for, they will earn capital gains.


Learn more about Earning income from capital gains

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User KJW
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