A has 220,000 common shares currently outstanding. All of these shares were issued at $12 per share for total proceeds of $2,640,000 (this i is also the paid-up capital (PUC) of the shares). A rebellious shareholder, who acquired her 15,000 shares at ats $10 per share, has been a major problem for Hair Force One. As such, Hair Force One has offered to redeem her shares at $12.50 per share.This offer has been accepted and any dividends resulting from the redemption will be non-eligible. What is the taxable capital gain that will arise from this redemption?

Answer rating: 100% (QA)

To calculate the taxable capital gain arising from the redemption of shares we need to d... View the full answer