Q2. TAXABLE CAPITAL GAINS (22 minutes, 15 marks)

Marwar had the following capital transactions during 2020:

1. He sold 35 shares of Alcoa Corp on March 1, 2020 for $39.14 each. At the time of the sale, he had to pay a broker fee of $25. He originally purchased these shares five years before for $32.66 each.

2. Marwar purchased an old sports car from his brother in 2004 for $22,000. The Jaguar E-type was in good shape when he purchased it, however Marwar kept it mostly in the garage all these years and didnt maintain it. At the time of the purchase, the car had a fair market value of $23,000. His brother originally paid $18,000 for it in 2000. Since it was taking up the entire garage, Marwar eventually agreed to part ways with the car and he sold it to someone from Montreal for $20,000. There were $1,000 of legal fees in the sale.

3. In order to take advantage of the hot real estate market in 2020, Marwar also decided to sell his cottage on Schuman Lake near Perth, ON. There were multiple offers on his cottage, but eventually he sold it to the highest bidder for $485,000. His real estate agent was paid $16,000 and the lawyer was paid $1,800 at the time of the sale. He originally paid $390,000 for the cottage in 2009 plus legal fees of $1,100.

Required: Calculate the total tax effects of the above transactions on both Marwars and his brothers net income for tax purposes for 2020. SHOW THE ENTIRE FORMULA IN GOOD FORMAT USING PROPER TITLES.

Please include excel formulas