Question

On August 27, 2019, Ms. Bubkeh sold 250 shares of Hundt Ltd., a public corporation, for $20 per share. Her trading history in these shares was as follows:

May 24, 1999— purchased 130 shares @ $26 per share

June 30, 1999 — purchased 170 shares @ $31 per share

Aug. 20, 2000 — received a 5% stock dividend, with each share received having a paid-up capital value of $25

Oct. 31, 2001 — purchased 300 shares @ $29 per share

June 9, 2007 — sold 400 shares @ $15 per share

July 5, 2007 — purchased 400 shares @ $12 per share

June 3, 2011 — purchased 385 shares @ $18 per share

Apr. 19, 2013 — received a 5% stock dividend with each share received having a paid-up capital value of $20

Required: Calculate the taxable capital gain or allowable capital loss on the 2007 and 2019 transactions.Please show all calculations.

Answer 1

Purchase Date	No. of shares	Share per price	Total Value
24.05.1999	130	26	3380
30.06.1999	170	31	5270
31.10.2001	300	29	8700
Total	600		17350
Average price per share			28.9
09.06.2007
Shares Sold	400
Price per share sold	$15
Net Loss in 2007	(28.92-15)*400	5568
Remaining Shares		200
Purchase Date	No. of shares	Share per price	Total Value
Shares remains	200	28.92	5784
09.06.2007	400	12	4800
03.06.2011	385	18	6930
Total	985		17514
Average Price			17.8
Profit on sale in 2019	($20-$17.8)*250	550
Adusted with c/f loss		550
Taxable profit		Nil