Eddie purchased some shares in 2008 for $10,000. He also paid brokerage costs of $50 on the purchase. He then sells the shares in May 2020 for $13,000 and pays $65 in brokerage costs on the sale. What would Eddie's cost base be on these shares?

Question

Quizplus · Accepted Answer

The cost base of Eddie's shares would include the initial purchase price of $10,000 plus the brokerage costs associated with purchasing the shares, which is $50. Therefore, the total cost base is $10,050. The brokerage costs on the sale do not affect the cost base but are relevant for calculating the net profit from the sale.

Eddie Purchased Some Shares in 2008 for $10,000