I(t) = gross investment during year t (flow variable). Fifteen states levy capital stock taxes (often called franchise taxes, though some states use that term for different types of taxes as well).Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. The current account balance measures the financial flows across a country's borders. Read on to find out how it reflects a country's economic health. The assumption of geometric decay, which has been used in the past in conjunction with theoretically complete efforts to measure capital, avoids the distinction. No federal loss carrybacks are included in the calculation of Washington capital gains for any year. The timescales of capital investments, and therefore the turnover dynamics of capital stock, have limited representation in macroeconomic modelling. A capital gain refers to the increase in the value of a capital asset that is realized when it is sold.