You purchase 115 shares of common stock at $62.32 per share. A few months later, you sell the shares for $85.32. No dividends were paid. Your stockbroker charges 3.8% commission on transactions of less than 150 shares. Determine the gain (or loss) of the stock transaction. Round your answer to the nearest cent.

The purchase cost is 115 × $62.32 = $7,166.80, and its 3.8% commission is $272.34. The sale brings in 115 × $85.32 = $9,811.80, less a 3.8% commission of $372.85. Subtracting the total purchase cost from the net sale proceeds gives a gain of $1,999.81, so the correct choice is “A gain of $1,999.81.”

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