Three years ago, Vasu purchased 8,750 shares in a Canadian start-up company called Wild Ride Inc. for $8,000. He decided to sell 1,000 shares on February 18, 2021, when they hit $6/share so he could contribute to his Tax-Free Savings Account (TFSA). He knew he would incur a large capital gain which he would have to report on his 2021 personal income tax return, however, he also had a capital loss of $600 on some mutual funds that he sold in December 2021. Knowing that Vasu lives in Quebec and is in the highest marginal tax bracket, how much tax will he pay on the sale of these investments in 2021? 

1. $1,439.37
2. $2,242.86
3. $4,485.71
4. $5,085.71
5. $1,195.67

Answer rating: 100% (QA)

Answer and explanations Option 6 119567 Stepbystep explanation Shares purchased 8750 f... View the full answer