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PLEASE ANSWER ASAP! A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the
PLEASE ANSWER ASAP!
A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year After the sixth year 0% 1% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)? (1 mark) Calculate the amount that Max will receive: (1 mark) b) Knowing that capital losses are applied against capital gains, what would be the overall taxes payable if Max sold shares in another company called Save The Day Inc. which resulted in a capital gain in 2021 of $50,000 and the shares in point a)? Max is a resident of Quebec and in the highest tax bracket. See Table A. (1 mark) Calculate the amount of taxes payable on the sale of the shares: (1 mark) Step by Step Solution
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