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Sheila has been investing for several years and has done well. She is thinking that...

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Accounting

Sheila has been investing for several years and has done well. She is thinking that it is time to cash in as she is looking to buy her first home. She decided to sell some of her Nvidia Inc. shares. She purchased 300 shares at $230/share in 2022, and another 450 shares at $270/share in April 2023. It is now April 8,2024, she has just sold 600 shares for a total of $528,000($880.00/share).
a) Calculate the capital gain and the taxable capital gain. Note: you must first find the average cost of the shares. (2 marks)
Calculation of the capital gain: (1 mark)
Calculation of the taxable capital gain: (1 mark)
b) Sheila does not want a mortgage on her first home and is looking to use the entire proceeds (net of tax) towards the purchase of her home in Montreal. If Sheila is in the highest marginal tax bracket, what is the maximum house value that she can purchase after paying taxes on the sale of the 600 Nvidia shares? (see Table A).(1 mark)
Calculation of the house value that Sheila can purchase: (1 mark)

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