Mr. Watson had the following share transactions during 2021. Mr. Watson is not generally active in the
Question:
Mr. Watson had the following share transactions during 2021. Mr. Watson is not generally active in the trading of shares.
Share # of shares Selling price Commission
Telus Co Ltd. 4,000 $6,745 $400
ABC Manufacturing Ltd. 1,200 $18,435 500
Patty Makers Inc. 750 $2,930 600
The shares of Telus Co. Ltd. were purchased in 2018 at a cost of $12,500. The shares of Patty Makers Inc. were purchased in 2019 at a cost of $1,150.
A summary of Mr. Watson's transactions in the shares of ABC Manufacturing is set out below:
2015 Purchased 1,000 shares for $6 each plus a total commission of $500
2017 Received a 20% stock dividend that increased the corporation's paid-up capital by $3 per share
2019 Purchased 400 shares for $9 each plus a total commission of $500
2020 Received a 2 for 1 stock split
Please calculate the taxable capital gains or allowable capital losses for the above transactions in 2021.
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow