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 $
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 1BCRQ
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can you help with bottom please?
based on canadian income tax not american
Transcribed Image Text: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
$
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