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 owns 3,000 shares of Baxter Ltd. with an adjusted cost base of $10 per share. On May 15, 2019, he sells all 3,000 Baxter Ltd. shares at $5 per share. On May 20, 2019, he acquires 1,300 shares of Baxter Ltd. at a cost of $4 per share and is still holding these shares at the end of the year. 4. In July 6, 2019, Geoffrey sells a capital property (28 Malpass Road) with an adjusted cost base of $150,000 for proceeds of disposition of $370,000. In 2018, he receives $80,000 in cash, along with the purchaser's note for the balance of the proceeds. The note is to be repaid in full ($290,000) in five years. Assume that Geoffrey deducts the maximum capital gains reserve. 5. In October, 2018, Geoffrey sold a different capital property (17 Greenview Ave) with an adjusted cost base of $130,000 for proceeds of disposition of $200,000. In 2018, he received $75,000 in cash, along with the purchaser's note for the balance of the proceeds. The note is to be repaid at the rate of $2,500 per year beginning in 2019. He receives the 2019 payment of $2,500 in full. Assume that Geoffrey deducts the maximum capital gains reserve in both 2018 and 2019. 6. 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. 7. Geoffrey owned a personal sailboat with an adjusted cost base of $40,000. He sold it for $70,000 in October 2019. 8. Geoffrey personally owned an oil painting that he purchased many years ago for $300. He sold it for $7,000 in June 2019. 9. 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. Use the excel response sheet to respond. Final answers for each line item should be typed into the yellow boxes. Please show all your backup work in the designated green space for full marks. Response: Show any additional notes/ work in green space Item Relevant Asset number Disposaldate Asset name Description of tax implication sociated with asset disposal 1 July 20, 2019 Ted, uld shares Allowable capital loss Ted Lad: July 20, 2019: (negative) 2 December 30, 2019 Ted. Lad shares Taxable capital gain-Ted Lad: December 30, 2019: 3 May 15, 2019 Baxter Ltd. Shares Allowable capital loss-Baxter Lad: (negative) 4 July 6, 2019 28 Malpass Road Al Capital gain before considering 2019 reserve: 4 July 6, 2019 28 Malpass Road B) Les: 2019 reserve taken: (negative) 4 July 6, 2019 28 Malpass Road C)2019 Taxable capital gain (A+B) SON 5 October 2018 17 Greenview Ave A 2018 Reserve Added to income in 2019: 5 October 2018 17 Greenview Ave B) 2019 Reserve taken: (negative) 5 October 2018 17 Greenview Ave 2019 Taxable capital gain (A+B]"SON) 6 November 2019 London Ontario Home 2019 taxable capital gain after principal residence exemption) 6 November 2019 Muskoka Cottage 2019 taxable capital gain (after principal residence exemption) 7 October 2010 Sailboat 2019 taxable capital gain 0.00 formulized do not type over 0.00 formulied do not type over 8 June 2019 Oil painting 2019 taxable capital gain 9 Ianuary 2010 Bench 2019 allowable capital loss 30) Total 2019 net taxable capital gains 0.00 formulivreddo not type over 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 owns 3,000 shares of Baxter Ltd. with an adjusted cost base of $10 per share. On May 15, 2019, he sells all 3,000 Baxter Ltd. shares at $5 per share. On May 20, 2019, he acquires 1,300 shares of Baxter Ltd. at a cost of $4 per share and is still holding these shares at the end of the year. 4. In July 6, 2019, Geoffrey sells a capital property (28 Malpass Road) with an adjusted cost base of $150,000 for proceeds of disposition of $370,000. In 2018, he receives $80,000 in cash, along with the purchaser's note for the balance of the proceeds. The note is to be repaid in full ($290,000) in five years. Assume that Geoffrey deducts the maximum capital gains reserve. 5. In October, 2018, Geoffrey sold a different capital property (17 Greenview Ave) with an adjusted cost base of $130,000 for proceeds of disposition of $200,000. In 2018, he received $75,000 in cash, along with the purchaser's note for the balance of the proceeds. The note is to be repaid at the rate of $2,500 per year beginning in 2019. He receives the 2019 payment of $2,500 in full. Assume that Geoffrey deducts the maximum capital gains reserve in both 2018 and 2019. 6. 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. 7. Geoffrey owned a personal sailboat with an adjusted cost base of $40,000. He sold it for $70,000 in October 2019. 8. Geoffrey personally owned an oil painting that he purchased many years ago for $300. He sold it for $7,000 in June 2019. 9. 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. Use the excel response sheet to respond. Final answers for each line item should be typed into the yellow boxes. Please show all your backup work in the designated green space for full marks. Response: Show any additional notes/ work in green space Item Relevant Asset number Disposaldate Asset name Description of tax implication sociated with asset disposal 1 July 20, 2019 Ted, uld shares Allowable capital loss Ted Lad: July 20, 2019: (negative) 2 December 30, 2019 Ted. Lad shares Taxable capital gain-Ted Lad: December 30, 2019: 3 May 15, 2019 Baxter Ltd. Shares Allowable capital loss-Baxter Lad: (negative) 4 July 6, 2019 28 Malpass Road Al Capital gain before considering 2019 reserve: 4 July 6, 2019 28 Malpass Road B) Les: 2019 reserve taken: (negative) 4 July 6, 2019 28 Malpass Road C)2019 Taxable capital gain (A+B) SON 5 October 2018 17 Greenview Ave A 2018 Reserve Added to income in 2019: 5 October 2018 17 Greenview Ave B) 2019 Reserve taken: (negative) 5 October 2018 17 Greenview Ave 2019 Taxable capital gain (A+B]"SON) 6 November 2019 London Ontario Home 2019 taxable capital gain after principal residence exemption) 6 November 2019 Muskoka Cottage 2019 taxable capital gain (after principal residence exemption) 7 October 2010 Sailboat 2019 taxable capital gain 0.00 formulized do not type over 0.00 formulied do not type over 8 June 2019 Oil painting 2019 taxable capital gain 9 Ianuary 2010 Bench 2019 allowable capital loss 30) Total 2019 net taxable capital gains 0.00 formulivreddo not type over