Question
Nancy recently received an offer for the shares of her corporation, Eager Beaver Consultants Ltd. Nancys shares have an adjusted cost base of $600,000, and
Nancy recently received an offer for the shares of her corporation, Eager Beaver Consultants Ltd. Nancys shares have an adjusted cost base of $600,000, and she has previously fully utilized her lifetime capital gains deduction. Although Nancy would like to sell her shares and retire, she will only sell her shares if her after tax retention from the sale totals at least $2 million. Assuming that Nancys combined federal and provincial marginal tax rate is 50 percent, what is the minimum price Nancy should accept for her shares?
$2,466,667. | ||
$4,600,000. | ||
$2,840,000. | ||
$3,400,000. |
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