IFIC Mutual Funds Licensing Practice Exam · Question
An investor, David, bought 100 units of Fund S at $15.00/unit. He later bought another 50 units at $18.00/unit. He then sold 70 units at $20.00/unit. Assuming no distributions occurred, what is David's Adjusted Cost Base (ACB) per unit after the sale?
David's initial ACB is (100 units * $15) + (50 units * $18) = $1,500 + $900 = $2,400 for 150 units. The ACB per unit is $2,400 / 150 = $16.00. When he sells 70
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Question: An investor, David, bought 100 units of Fund S at $15.00/unit. He later bought another 50 units at $18.00/unit. He then sold 70 units at $20.00/unit. Assuming no distributions occurred, what is David's Adjusted Cost Base (ACB) per unit after the sale?
Answer options: ✅ $16.00/unit
- $15.50/unit
- $16.50/unit
- $17.00/unit
Correct answer: $16.00/unit
Explanation: David's initial ACB is (100 units * $15) + (50 units * $18) = $1,500 + $900 = $2,400 for 150 units. The ACB per unit is $2,400 / 150 = $16.00. When he sells 70 units, the ACB for the remaining units remains $16.00/unit.
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