Merlin Inc.has650,000Class "A" common shares outstanding. Information on their issuance is as follows:

SharesIssueTotal

DateIssuedPriceProceeds

January, 2015500,000$15.00$7,500,000

June, 2016150,00020.003,000,000

Totals650,000$10,500,000

Required:

Joan Fox acquired 10,000 shares of the 2015 issue and 5,000 shares of the 2016 issue.

1.Determine the total adjusted cost base (ACB), the ACB per share, the total Paid Up Capital (PUC) as well as the per share PUC of Joan's shares.(3 marks)

2.If Martex Inc. repurchase (redeem) 1,000 common share from Joan at $20.15 per share, what arethe taxed amounts will be included in Nellie's Net Income For Tax Purposes as a result of the redemption(4Marks)