Canadian Tax Principles

Question:

Over the last five years, Mary Blaise has bought and sold the shares of two companies, Sadean Ltd. and Dorcan Inc. Both companies are publicly traded and pay eligible dividends on an irregular basis.

Transactions involving Sadean Ltd. shares over this period are as follows:

• January, 2014 Purchase 1,250 @ $24
• November, 2016 Purchase 860 @ 29
• June, 2018 Sale 1,750 @ 31

Transactions involving Dorcan Inc. shares over this period are as follows:

• March, 2014 Purchase 960 @ $7.50
• September 2015 Purchase 1230 @ 8.75
• February, 2016 Purchase 620 @ 9.20
• July, 2016 Sale (980) @ 10.15
• March, 2017 Purchase 375 @ 11.23
• April, 2018 Sale (625) @ 8.10

Required:

1. Determine the taxable capital gain resulting from the June, 2018 disposition of the Sadean Ltd. Shares
2. With respect to the transactions involving Dorcan Inc., determine the following:
   1. The adjusted cost base of the shares that are still on hand on December 31, 2018.
   2. The taxable capital gain or allowable capital loss resulting from the 2016 disposition
   3. The taxable capital gain or allowable capital loss resulting from the 2018 disposition