Capital gains - ACB and merger...
Sorry, first time doing this and I want to make sure I'm doing this right.
I bought a total of 1200 shares of Company A for a calculated ACB of $0.60.
I bought a total of 1300 shares of Company B for a calculated ACB of $2.21
Company A then merged with B and the 1200 shares of A turned into 558 of B.
I then sold 1858 shares of B @ $3.90 per share for an account credit of $7238.75
Is the ACB of Company A irrelevant for taxes now? How do I factor in the 558 merger shares into Company B? Do I have to find out the share price of B at the time of merger to calculate the ACB? This is effectively all the info I was given by my broker.
Any tips would be appreciated.
EDIT - Maybe I'm over thinking this? As I sold everything at once, is it just the total credit to the account minus the total share cost = capital gain? It just means that post-merger the cost of those 558 shares (instead of the original 1200) remains at $719.06? Hence the capital gains are $7238.95 minus $3594.76 equals $3644.99, and I'm taxed on the latter?
I bought a total of 1200 shares of Company A for a calculated ACB of $0.60.
I bought a total of 1300 shares of Company B for a calculated ACB of $2.21
Company A then merged with B and the 1200 shares of A turned into 558 of B.
I then sold 1858 shares of B @ $3.90 per share for an account credit of $7238.75
Is the ACB of Company A irrelevant for taxes now? How do I factor in the 558 merger shares into Company B? Do I have to find out the share price of B at the time of merger to calculate the ACB? This is effectively all the info I was given by my broker.
Any tips would be appreciated.
EDIT - Maybe I'm over thinking this? As I sold everything at once, is it just the total credit to the account minus the total share cost = capital gain? It just means that post-merger the cost of those 558 shares (instead of the original 1200) remains at $719.06? Hence the capital gains are $7238.95 minus $3594.76 equals $3644.99, and I'm taxed on the latter?