A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on December 31, 2019. B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo Ltd. shares.
A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on December 31, 2019. B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo Ltd. shares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Miss Wells has purchased the shares of two companies over the years. Each company has only
one class of shares. Purchases and sales of shares in the first of these companies, Memo Inc.,
are as follows:
February, 2015 purchase
November, 2016 purchase
April, 2017 purchase
October, 2017 sale
September, 2019 purchase
November, 2019 sale
60 @ $24
90 @ 28
45 @
30
(68) @
36
22 @
26
(53) @
40
Purchases and sales of shares in the second company, Demo Ltd., are as follows:
April, 2018 purchase
December, 2018 purchase
July, 2019 sale
$24
160 @
(260) @ 36
200
33
Required:
A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on
December 31, 2019.
B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo
Ltd. shares.
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