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Manpreet #3) (8 Marks) Mr. Investor has many investments in a wide variety of financial instruments. One of the shares he has invested in
Manpreet #3) (8 Marks) Mr. Investor has many investments in a wide variety of financial instruments. One of the shares he has invested in over the years is Hundt Ltd., a public company. His trading history in these shares is as follows: Date March 5, 2002 $ per Share $70 purchased 1,000 shares. Description January 30, 2007 June 23, 2017 July 13, 2017 $30 stock dividend of 10%; shares transferred out of retained earnings to contributed capital. $20 sold 200 shares. $40 purchased 500 shares. There have been no further transactions to date. REQUIRED: Determine the adjusted cost base of Mr. Investor's shares on December 31, 2017. Calculate the tax effects of any sale of shares. Show all calculations and round to two decimal places (example $10.60).
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