Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ankit invested in a great mutual fund called Fabulous Inc., however, with the pandemic and the effects on the economy, the mutual fund has

image text in transcribed

Ankit invested in a great mutual fund called Fabulous Inc., however, with the pandemic and the effects on the economy, the mutual fund has taken quite a hit. Ankit needs the money and has no choice but to sell in his third year of holding this mutual fund. Three years ago, Ankit purchased 2,000 shares for $19.35/share and decided to sell all his shares on April 8, 2022, when the share price was at $8.25/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Within the first year Deferred sales charge 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% 0% After the sixth year a) What is the amount that Ankit will receive for the sale of these shares if the deferred sales charge is based on the value of the fund when it is redeemed? (ignore income taxes) Calculate the amount that Ankit will receive: (1 mark) b) What is the amount that Ankit will receive for the sale of these shares if the deferred sales charge is based on the original share price when purchased? (ignore income taxes) Calculate the amount that Ankit will receive: (1 mark) c) Ankit is a resident of Quebec and in the highest marginal tax bracket. Ankit is trying to figure out his taxes payable based on the following sale of his stocks. Ankit has capital gains of $30,000 that were triggered in January of this year on the sale of other stocks and now has the sale of Fabulous Inc. Calculate the amount of taxes payable that Ankit will pay on the sale of his shares to date. (Take your response in a) into consideration and Table A) Calculate the amount of taxes payable that Ankit will pay on the sale of his shares to date: (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

3rd Edition

978-0078110856

Students also viewed these Accounting questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago