Question
Mr. Watson had the following share transactions during 2021. Mr. Watson is not generally active in the trading of shares. Share # of shares Selling
Mr. Watson had the following share transactions during 2021. Mr. Watson is not generally active in the trading of shares.
Share # of shares Selling price Commission
Telus Co Ltd. 4,000 $6,745 $400
ABC Manufacturing Ltd. 1,200 $18,435 500
Patty Makers Inc. 750 $2,930 600
The shares of Telus Co. Ltd. were purchased in 2018 at a cost of $12,500. The shares of Patty Makers Inc. were purchased in 2019 at a cost of $1,150.
A summary of Mr. Watson's transactions in the shares of ABC Manufacturing is set out below:
2015 Purchased 1,000 shares for $6 each plus a total commission of $500
2017 Received a 20% stock dividend that increased the corporation's paid-up capital by $3 per share
2019 Purchased 400 shares for $9 each plus a total commission of $500
2020 Received a 2 for 1 stock split
Please calculate the taxable capital gains or allowable capital losses for the above transactions in 2021.
Step by Step Solution
3.46 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
n the context of the given question we are requir...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started