Question

Calculate the taxable capital gain or allowable capital loss to be reported in 2018 for each of the following unrelated situations and show your calculations: (a) On September 15, 2018, Polly Ester sold 200 shares of her holdings in Sears Canada Inc. for $30 per share. (For the ACB of these shares, please round to TWO decimal places!). The shares had been acquired as follows: February 2, 2017 purchased 200 shares @$18 per share December 15, 2017 sold 50 shares @$16 per share January 5, 2018 purchased 150 shares @20 per share June 30, 2018 purchased 300 shares @ 25 per share July 2, 2018 purchased 150 shares @ $28 per share (b) During 2018, Ben Dover sold the following personally owned capital assets: Proceeds of Sale Original Cost Painting $3,400 $ 900 Computer 1,200 1,500 Diamond ring 800 1,000

Answer 1

Scenario 1:

(i) February 2, 2017 purchased 200 shares @$18 per share December 15, 2017 sold 50 shares @$16 per share. On a per-share basis, the short-term gain would be $2 per share. Multiplying this value by 50 shares yields $100.

There is short term capital gain of $100.

(a) On September 15, 2018, Polly Ester sold 200 shares of her holdings in Sears Canada Inc. for $30 per share.On June 30, 2018 purchased 300 shares @ 25 per share.On a per-share basis, the short-term gain would be $5 per share. Multiplying this value by 200 shares yields $1000.

There is short term capital gain of $1000.