An individual is holding 500 shares of Matrix Ltd. that have an adjusted cost base of $25 per share. On December 1 of the current year, all of these shares are sold for $10 per share. On December 15 of the current year, he purchases 300 shares of Matrix Ltd. For $12 per share. What is the net tax consequence of these two transactions?

Question 7 options:

	A. An allowable capital loss of $3,750.
	B. An allowable capital loss of $1,500.
	C. An allowable capital loss of $3,000.
	D. No gain or loss.

Which of the following statements with respect to the taxation of capital gains is not correct?

Question 8 options:

	A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset.
	B. Gains resulting from dispositions of personal use capital assets are subject to tax.
	C. When an individual sells shares in a Canadian small business corporation, any resulting capital gain can be deferred if the proceeds are reinvested in shares of another Canadian small business corporation.
	D. When a part of a group of identical securities is sold, the adjusted cost base of the shares sold must be based on the average cost of the group.