FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bardur purchased 1200 shares of Verity Inc in 2018 for $50/shares. In 2019, they purchased
another 800 shares for $60/share.
They sold 1000 shares when the share price began to drop. They sold the shares for
$45/share on September 13. The shares price began to recover, so they purchased 500
shares at $50/share on October 10.
In addition to the above transactions, they sold
Year
acquired
POD
ACB
Expenses
Shares in Yaroo
2015
26,000
15,000
500
Painting
1952
120,000
20,000
1,800
1st edition 1902 book
1966
12,000 15,000
180
Car
2009
19,000
32,000
0
Rare Garden Gnome
1975
11,000
800
0
Bardur has the following loss carryovers:
LPP loss carryover from 2019 of $2,500.
Net capital loss carryover from 2017 of $1,500
Required:
a. Calculate the ACB per share of the remaining Verity Inc. shares.
b. Calculate the total in ITA 3(b).
c. Calculate the tax effect of the above transactions on taxable income.
d. Calculate the remaining loss carryover pool balances.
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Transcribed Image Text:Bardur purchased 1200 shares of Verity Inc in 2018 for $50/shares. In 2019, they purchased another 800 shares for $60/share. They sold 1000 shares when the share price began to drop. They sold the shares for $45/share on September 13. The shares price began to recover, so they purchased 500 shares at $50/share on October 10. In addition to the above transactions, they sold Year acquired POD ACB Expenses Shares in Yaroo 2015 26,000 15,000 500 Painting 1952 120,000 20,000 1,800 1st edition 1902 book 1966 12,000 15,000 180 Car 2009 19,000 32,000 0 Rare Garden Gnome 1975 11,000 800 0 Bardur has the following loss carryovers: LPP loss carryover from 2019 of $2,500. Net capital loss carryover from 2017 of $1,500 Required: a. Calculate the ACB per share of the remaining Verity Inc. shares. b. Calculate the total in ITA 3(b). c. Calculate the tax effect of the above transactions on taxable income. d. Calculate the remaining loss carryover pool balances.
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