3 Sharon Slotten purchased shares in ATCO Ltd. during the current year as follows: 4 5 6 7 Jan. 1: 200 shares for $25 per share April 2: 300 shares for $30 per share July 1: 100 shares sold for $45 per share Sept. 8: 500 shares for $24 per share 8 On December 22, of the current year Sharon sells 200 ATCO Ltd. shares for $35 per share and E9 pays $100 in sales commission. 10 11 Required: Calculate the taxable capital gain or loss included in Sharon's NET INCOME under 12 paragraph 3(b) of the Income Tax Act. 13 14 Solution: 15 16 Date No. of shares Cost per share Cost in Pool 17 Jan.1 200 $ 25.00 $ 5,000 18 Apr.2 300 $ 30.00 $ 9,000 19 Subtotal 20 01-Jul 100 $ 45.00 $ 4,500 21 Sept.8 500 $ 24.00 $ 12,000 22 Total 23 24 Calculation of Capital Gain: 25 Proceeds of disposition 26 Selling costs 27 Adjusted cost base 28 Capital Gain (loss) 29 Capital Gains reserve 30 Capital Gain 31 Inclusion rate 32 Taxable capital gain 33 34 Total 01-Jul Dec.22 $ 4,500 $ 7,000 $ $ 100 $
3 Sharon Slotten purchased shares in ATCO Ltd. during the current year as follows: 4 5 6 7 Jan. 1: 200 shares for $25 per share April 2: 300 shares for $30 per share July 1: 100 shares sold for $45 per share Sept. 8: 500 shares for $24 per share 8 On December 22, of the current year Sharon sells 200 ATCO Ltd. shares for $35 per share and E9 pays $100 in sales commission. 10 11 Required: Calculate the taxable capital gain or loss included in Sharon's NET INCOME under 12 paragraph 3(b) of the Income Tax Act. 13 14 Solution: 15 16 Date No. of shares Cost per share Cost in Pool 17 Jan.1 200 $ 25.00 $ 5,000 18 Apr.2 300 $ 30.00 $ 9,000 19 Subtotal 20 01-Jul 100 $ 45.00 $ 4,500 21 Sept.8 500 $ 24.00 $ 12,000 22 Total 23 24 Calculation of Capital Gain: 25 Proceeds of disposition 26 Selling costs 27 Adjusted cost base 28 Capital Gain (loss) 29 Capital Gains reserve 30 Capital Gain 31 Inclusion rate 32 Taxable capital gain 33 34 Total 01-Jul Dec.22 $ 4,500 $ 7,000 $ $ 100 $
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 46P
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can you help with bottom please?
based on canadian income tax not american
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT