In 2018, Mr. Luki purchased shares of Feeling Lucky Corp., an eligible small business corporation,...
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Accounting
In 2018, Mr. Luki purchased shares of Feeling Lucky Corp., an eligible small business corporation, for $20,000. True to its name, the company increased in value and in early 2020, Mr. Luki disposed of all his shares for a $200,000 and realized an easy capital gain. Feeling lucky again, and within a month of the sale, he purchased shares in the Batta Bing Corp., another eligible small business corporation for $160,000. In late 2020, pursuant to a management buyout offer that he could not refuse, he disposes all of his Batta Bing shares for the agreed sale proceeds of $160,100.
Required:
Assuming that all pertinent elections were made to minimize taxes on the disposition of the Feeling Lucky Corp shares, for the year 2020, in a concise point form schedule, calculate Mr.Lukis :
1) Taxable capital gain on the sale of the Feeling Lucky Corp. shares.
2) The ACB for the Batta Bing Corp. shares; and
3) The taxable capital gain on the disposition of the Batta Bing Corp. shares.
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