In September, an investor sold 300 shares of Semi-Tech Company, with an adjustedcost base (ACB) of $8,200, for net proceeds of $6,700. Two weeks later, the investorpurchased another 300 shares of Semi-Tech for $7,200 and still holds them. In whichof the following ways will the loss on the disposition of the shares be reported for2011 income tax reporting purposes?O a) The investor will report a capital loss of $1,500.b) The investor will report a capital loss of $1,000.Oc) The investor will not report a capital loss.d) The investor will report a capital loss of $500.

Adjusted cost base is the purchase price of the share adjusted by dividends, bonus, share splits…

purchased another 300 shares of Semi-Tech for $7,200 and s of the following ways will the loss on the disposition of the sl 2011 income tax reporting purposes? O a) The investor will report a capital loss of $1,500. O b) The investor will report a capital loss of $1,000.

purchased another 300 shares of Semi-Tech for $7,200 and s of the following ways will the loss on the disposition of the sl 2011 income tax reporting purposes? O a) The investor will report a capital loss of $1,500. O b) The investor will report a capital loss of $1,000.

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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Question

In September, an investor sold 300 shares of Semi-Tech Company, with an adjusted
cost base (ACB) of $8,200, for net proceeds of $6,700. Two weeks later, the investor
purchased another 300 shares of Semi-Tech for $7,200 and still holds them. In which
of the following ways will the loss on the disposition of the shares be reported for
2011 income tax reporting purposes?
O a) The investor will report a capital loss of $1,500.
b) The investor will report a capital loss of $1,000.
Oc) The investor will not report a capital loss.
d) The investor will report a capital loss of $500.

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