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Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per share in 2013. The fair market value of the shares on the date of the gift was $50 per share. The shares have historically paid dividends of approximately $4 per share per year. Calculate the taxable capital gains, if any, to Cindy from this transaction (assume the default CRA rollover position applies). Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer:

Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per share in 2013. The fair market value of the shares on the date of the gift was $50 per share. The shares have historically paid dividends of approximately $4 per share per year. Calculate the taxable capital gains, if any, to Cindy from this transaction (assume the default CRA rollover position applies). Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per share in 2013. The fair market value of the shares on the date of the gift was $50 per share. The shares have historically paid dividends of approximately $4 per share per year. Calculate the taxable capital gains, if any, to Cindy from this transaction (assume the default CRA rollover position applies). Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer: Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per share in 2013. The fair market value of the shares on the date of the gift was $50 per share. The shares have historically paid dividends of approximately $4 per share per year. Calculate the taxable capital gains, if any, to Cindy if she transfers the shares to her husband and opts out of the rollover provision. Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer: Ка KY Cindy legally transfers, for no proceeds, title to an antique desk to her son, age 15. The desk was valued at approximately $55,000 at the date of the transfer. Cindy had inherited the desk from her grandmother in 2003. The fair market value of the desk was $12,000 at the time of the inheritance. Her son intends to sell the desk in three years' time to help finance his education. Calculate the taxable capital gains, if any, to Cindy from this transaction. Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer:
Transcribed Image Text:Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per share in 2013. The fair market value of the shares on the date of the gift was $50 per share. The shares have historically paid dividends of approximately $4 per share per year. Calculate the taxable capital gains, if any, to Cindy from this transaction (assume the default CRA rollover position applies). Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer: Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per share in 2013. The fair market value of the shares on the date of the gift was $50 per share. The shares have historically paid dividends of approximately $4 per share per year. Calculate the taxable capital gains, if any, to Cindy if she transfers the shares to her husband and opts out of the rollover provision. Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer: Ка KY Cindy legally transfers, for no proceeds, title to an antique desk to her son, age 15. The desk was valued at approximately $55,000 at the date of the transfer. Cindy had inherited the desk from her grandmother in 2003. The fair market value of the desk was $12,000 at the time of the inheritance. Her son intends to sell the desk in three years' time to help finance his education. Calculate the taxable capital gains, if any, to Cindy from this transaction. Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer:
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