that are being sold, with all or part of the proceeds being used to acquire the shares of other (Deferral On Small Business Investments) The two independent Cases that follow involve shares of eligible small business corporations Assignment Problem Eight - 12 eligible small business corporations. The shares that are being sold have been held for more than one year. Case A in January 2020, Martha Cutler sells her common shares in A Ltd. for proceeds of $1,500,000. A Ltd. is an eligible small business corporation. She realizes a $250,000 capital gain on this disposition. In March 2020, she invests $1,200,000 of the proceeds in B Ltd., a new eligible small business corporation. Case B in April 2020, Thomas Wolf sells his common shares in C Ltd. for $5,600,000 C Ltd. is an eligible small business corporation. He realizes a $850,000 capital gain on this disposition The proceeds from this sale are immediately invested in two eligible small business corporations, D Ltd. at a cost of $2,600,000, and E Ltd. at a cost of $3,000,000. Required: For both Cases, determine the maximum permitted capital gains deferral, as well as the adjusted cost base of the replacement shares. Assignment Problem Eiaht - 12 that are being sold, with all or part of the proceeds being used to acquire the shares of other (Deferral On Small Business Investments) The two independent Cases that follow involve shares of eligible small business corporations Assignment Problem Eight - 12 eligible small business corporations. The shares that are being sold have been held for more than one year. Case A in January 2020, Martha Cutler sells her common shares in A Ltd. for proceeds of $1,500,000. A Ltd. is an eligible small business corporation. She realizes a $250,000 capital gain on this disposition. In March 2020, she invests $1,200,000 of the proceeds in B Ltd., a new eligible small business corporation. Case B in April 2020, Thomas Wolf sells his common shares in C Ltd. for $5,600,000 C Ltd. is an eligible small business corporation. He realizes a $850,000 capital gain on this disposition The proceeds from this sale are immediately invested in two eligible small business corporations, D Ltd. at a cost of $2,600,000, and E Ltd. at a cost of $3,000,000. Required: For both Cases, determine the maximum permitted capital gains deferral, as well as the adjusted cost base of the replacement shares. Assignment Problem Eiaht - 12