PART 1 - From the following three questions solve TWO questions ONLY and provide the solutions in the spaces provided

QUESTION 1:

Over the last ten years, Ms. Julie Ho has engaged in the following transactions in the shares of

Alcor Ltd.:

Type OfNumberCost (Proceeds)

DateTransactionOf SharesPer Share

May, 2007Purchase200$10.00

June, 2008Purchase15014.75

April, 2011Sale( 75)( 16.25)

July, 2013Purchase12513.50

October, 2015Purchase18012.75

July, 2017Sale(200)( 14.00)

Required:

• Show clearly the cost of each share at the date of each purchase and sale. Ensure you calculate the cost after the last date of transactions.
• Determine the amount of any taxable capital gain or allowable capital loss resulting from the 2017 sale of Alcor Ltd. shares.

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QUESTION 2:

In early 2018, Miss Mary Stern advises you that it is her intention to sell both her Ottawa residence and her condominium at Mt. Tremblant. She acquired both of these properties in 2003 and has spent at least a part of each subsequent year in residence at each property. The cost of the Ottawa house was $173,000, while the Mt. Tremblant condominium was $131,000. She provides you with the following additional information:

City Home(Ottawa)Condo (Mt. Tremblant)

Estimated Selling Price$325,000$304,000

She has asked you to determine the minimum taxable capital gain that would result from the sale of the two properties during 2018.

Required:

Calculate the amount of the taxable capital gain that would arise under the designation that you have recommended.

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QUESTION 3:

• During the current year, Robert Langois disposes of several items.The proceeds of disposition and the adjusted cost base of the various items are as follows:

AdjustedProceeds Of

Cost BaseDisposition

Collector Car$45,000$61,000

Marble Sculpture80013,000

Luxury Custom Furniture21,00012,000

Stamp Collection50,50026,000

Required:

Determine what is the net tax consequence of these dispositions?