Hello, I need help with this question. 2. Andre Gagnon bought 100 shares of BCE

Question

Hello, I need help with this question. 2. Andre Gagnon bought 100 shares of BCE for $30 per share and paid a com mission of $33 on the transaction. In 2011 he sold the share paid a commission of $29.95. He received dividends of $2.10 during the year He lives in Cornwall, Ontario. Calculate the following: (a) The adjusted cost base per share (b) The capital gain (c) The taxable capital gain (d) The taxable dividend (e) The tax on the capital gain and the 2011 dividends if he has taxable income from other sources of $112,000

Explanation / Answer

a ) Adjusted Cost Base per Share = Price paid for per Share + Commision per Share

= $ 30 + $33/100

= $ 30.33 per Share  

b) Capital Gain   

Purchase = Price paid for shares + Commission = $100 X 30 + 33 = $ 3,033

Sales = Sales - Commission = $ 100 X 32 - 29.95 = $ 3,170.05

Capital Gain = $ 3,170.05 - 3,033 = $ 137.05

c ) Taxable Capital gain = $ 137.05

d ) Taxable Dividend = $ 2.1 X 100 = $ 210

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