Question
Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income.
Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income. The transactions included: 1. On January 1, 2019, Geoffrey purchased 2,000 shares of Ted Ltd. at $25 per share and 400 shares at $30 per share on February 5, 2019. He sold 220 of these shares on July 20, 2019 at $23 per share. 2. On September 30, 2019, he purchased an additional 800 shares of Ted Ltd. at $29 per share. On December 30, 2019, he sold 270 Ted Ltd. shares at $65 per share. 3. Geoffrey purchased his first home in London, Ontario in 2008 at a cost of $75,000. In 2012, he also purchased a cottage in Muskoka for $100,000. In November, 2019, both properties are sold, the house for $195,000 and the cottage for $164,000. Both of these properties can qualify as a principal residence for him. He will designate the principal residence exemption in such a way that will minimize the taxable capital gains that he must report on the sale of these two properties. 4. Geoffrey owned a personal sailboat with an adjusted cost base of $40,000. He sold it for $71,000 in October 2019. 5. Geoffrey personally owned an oil painting that he purchased many years ago for $300. He sold it for $7,000 in June 2019. 6. Geoffrey kept a bench on the front porch of his home which cost him $1,500 several years ago. He sold it for $100 in January 2019.
Required: Determine the total net taxable capital gains included in paragraph 3(b) of Mr. Guo's division B income
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