Jim Harris likes to invest in the stock market for the long term. Jim decided to invest in a public company name Apple Two Corporation. Jim has provided the following trade information related to this investment:

Nov. 8, 2013 Purchased 1,000 shares at initial offering price of $5.

Apr. 15, 2014 Purchased 2,000 shares at price of $3.50.

June 6, 2015 Sold 500 shares at $2.75, incurred brokerage commission of $50.

July 2, 2015 Purchased 2,000 shares at $5.

Aug 30, 2016 Received a stock dividend of 10% of shares held; stock dividend increased corporation’s paid-up capital by $1.00/share.

June 20, 2017 Two-for-one stock split.

Nov. 8, 2018 Purchased 2,000 shares at $8.

Jan. 12, 2019 Received a stock dividend of 10% of shares held; stock dividend increased corporation’s paid-up capital by $1.50/share.

Nov. 5, 2020 Sold 10,000 shares for $7.50/share, incurred brokerage commission of $650.

REQUIRED

Jim has asked you to calculate the taxable capital gain or allowable capital loss on the above transactions.

Answer rating: 100% (QA)

June 6 2005 Proceeds of disposition 500 shares 275 ACB 500 sha... View the full answer