Untitled document - Google Doc X Group assignment - Google Docs X III How to track your adjusted cost | > X docs.google.com/document/d/1h5EWsgkuc88fW06JFaFjyjv21/qgmmkYE-I_hDSb058/edit 864 G Google M MAIL netflix C invite making Other bookmarks Group assignment * @ @ Share File Edit View Insert Format Tools Add-ons Help Last edit was seconds ago no 6 A 7 150% Normal text Calibri - 11 + B I U A / CO P O . = = =13 X B . F. E E X Editing 1 2 1 1 . 1 . 1 1 5 . 1 . 1 . 1 . 2 . 14 . 1 1 5 . . 10 . 11 . 1 . 12 . 1 . 13 . 1 . 14 . 1 . 15 . 1 . 16 . 17 . 1 . 18 . 1 19 Part 1: 30 marks, 10% value You're a well-respected financial planning group. Your two largest clients-Mr. and Mrs. Laff-are afflicted by the events happening in Ukraine. They come to you wanting to divest from Russian exposure to the greatest extent possible in their individual non-registered portfolios- specifically their emerging markets funds, which are currently in an unrealized loss position (combined, ACB: $1,000,000, FMV: $720,000). They have read up on a strategy called tax-loss harvesting and think that's a good idea for them, seeing as how they previously triggered capital gains a couple years back. With this in mind, they want to realize their capital loss for tax purposes, then immediately use the proceeds from their Global Emerging + Markets Fund to put into a new investment, the Dynamic Emerging Markets Fund. After conducting some research, you have a high degree of confidence that their claim to capital losses will be disallowed and that their ACB in the new investment will be impacted. Because of this, you have arranged a meeting to discuss these findings. Questions: 1. Which specific rule will prevent the Laff's from claiming a capital loss? (2 marks) 2. Describe it using your own words. (5 marks) 3. What will be their new ACB as a result of their denied capital loss? Show your work. (5 marks) 4. How might you advise the Laff's so they can successfully claim their capital losses? (5 marks) Additional marks: 1. Creativity and readability-do I enjoy reading it? 2. Overall quality-is it well organized, is attention paid to spelling and grammar? Activate Windows + Go to Settings to activate Windows Group assignment.docx Show all O WE 3'C Cloudy ~ ( ) ENG 12:36 PM E 4/9/2022