Johan Deroi has securities with an adjusted cost base of $1,000 and a fair market value of $1,500. If he sells these securities to his brother for $2,000, he will have a capital gain of $1,000.

Question

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The capital gain would be calculated as the selling price of $2,000 minus the adjusted cost base of $1,000, resulting in a capital gain of $1,000.

Johan Deroi Has Securities with an Adjusted Cost Base of $1,000