None Bardur purchased 1200 shares of Verity Inc in 2018 for $50/shares. In 2019, they purchasedanother 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 500shares at $50/share on October 10.In addition to the above transactions, they soldYearacquiredPODACBExpensesShares in Yaroo201526,00015,000500Painting1952120,00020,0001,8001st edition 1902 book196612,000 15,000180Car200919,00032,0000Rare Garden Gnome197511,0008000Bardur has the following loss carryovers:LPP loss carryover from 2019 of $2,500.Net capital loss carryover from 2017 of $1,500Required: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.

Part 2: Explanation:Step 1: Calculated the ACB per share by summing up the total cost of acquisition…

Answered: Bardur purchased 1200 shares of Verity…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 65P

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Wilson corporation buys the following investments on January 10, 2019: 1,000 shares in Foxcom, total cost $10,000 500 shares in Lamb computer, total cost $6,000 On April 10 2019 Wilson corporation sold 200 Foxcom shares for $2,600 total and 100 Lamb Computer shares for $950 total. Indicate the amount that the remaining shares should be recorded in the balance sheet at December 31, 2019, assuming the following: There were no further transactions during the months of May to December 2019. The year-end (December 31, 2019) market value of Foxcom shares and Lamb Computer shares had remained the same since January 10, 2019.

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