Last year, on February 1, 2018, Davidpurchased 1,000 shares in a mutual fund called Amazing Growth Inc. for $6.30/share. The investment did well, and he was very impressed with himself. As he needed the money to pay for his tuition and rent, he sold it on March 28, 2019 when the share price hit $14.25/share. His investment broker however advised him not to sell (especially as the fund was a back-end loaded fund).

a) What is the cheque amount that David will receive for the sale of these shares?

b) Calculate David's capital gain and his taxable capital gain.

c) David is thinking of selling one of his bad investments, which would result in an allowable capital loss of $2,000 (capital loss of $4,000 x 50%). Taking all of David's information from the sale of his investments to date in 2019, and this potential allowable capital loss into consideration, if he is in the top marginal tax bracket, what is the estimated amount of tax that he would pay on his 2019 personal tax returns? (If needed, assume Table A's 2018 tax rates are similar to 2019 rates).

d) What if instead David had held the shares in Amazing Growth Inc. in a Tax-Free Savings Account (TFSA), calculate David's capital gain and his taxable capital gain. Ignore c) for this question.