RE: RE: RE: RE: RE: ALBERTA OILSANDS ANNOUNCES $10Olliana
Am I right in my calculations. Have never dealt with flow through shares and trying to get a handle on it.
20,000,000 shares * .50 = $10,000,000raised
Amount is fully written off giving tax rebate of $10,000,000 * 43% = $4,300,000
ACB is now zero and future sale is considered Capital Gain.
Sell at current .45 20,000,000 * .45= $9,000,000
Cap Gain tax = .5 * $9,000,000 =$4,500,000 * 43% = $1,935,000 payable
Profit = $4,300,000 - $1,935,000 =$2,565,000. Not a bad return! Like printing money.
Regards,
Jim