Mr. Watson had the following share transactions during 2021. Mr. Watson is not generally active in the trading of shares. Share # of shares Selling price Commission Telus Co Ltd. 4,000 $6,745 $400 ABC Manufacturing Ltd. 1,200 $18,435 500 Patty Makers Inc. 750 $2,930 600 The shares of Telus Co. Ltd. were purchased in 2018 at a cost of $12,500. The shares of Patty Makers Inc. were purchased in 2019 at a cost of $1,150. A summary of Mr. Watson transactions in the shares of ABC Manufacturing are set out below: 2015 Purchased 1,000 shares for $6 each plus a total commission of $500 2017 Received a 20% stock dividend that increased the corporation's paid-up capital by $3 per share 2019 Purchased 400 shares for $9 each plus a total commission of $500 2020 Received a 2 for 1 stock split Required Please calculate the taxable capital gains or allowable capital losses for the transaction above in 2021.

Mr. Watson had the following share transactions during 2021. Mr. Watson is not generally active in the trading of shares. Share # of shares Selling price Commission Telus Co Ltd. 4,000 $6,745 $400 ABC Manufacturing Ltd. 1,200 $18,435 500 Patty Makers Inc. 750 $2,930 600 The shares of Telus Co. Ltd. were purchased in 2018 at a cost of $12,500. The shares of Patty Makers Inc. were purchased in 2019 at a cost of $1,150. A summary of Mr. Watson transactions in the shares of ABC Manufacturing are set out below: 2015 Purchased 1,000 shares for $6 each plus a total commission of $500 2017 Received a 20% stock dividend that increased the corporation's paid-up capital by $3 per share 2019 Purchased 400 shares for $9 each plus a total commission of $500 2020 Received a 2 for 1 stock split Required Please calculate the taxable capital gains or allowable capital losses for the transaction above in 2021.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

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