Ontario Barrister and Solicitor Practice Exam

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Study for the Ontario Barrister and Solicitor Exam. Quiz with flashcards and multiple choice questions, each with hints and explanations. Prepare for your legal career!

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How is PUC calculated?

Stated capital / # of shares paid
Redemption proceeds - deemed dividend - ACB
ACB greater than PUC
PUC greater than ACB

The correct answer is: Stated capital / # of shares paid

PUC is the abbreviation for "paid-up capital," which is the total amount of capital that has been paid by shareholders for their shares. The formula for calculating PUC is dividing the stated capital by the number of shares paid. Stated capital is the total amount of money received by a company from the issuance of its shares. Therefore, option B is incorrect as it does not take into account the calculation of PUC. Options C and D are also incorrect as they refer to the relationship between ACB (Adjusted Cost Base) and PUC, rather than the actual calculation of PUC itself. Option A is the only correct answer as it follows the correct formula for calculating PUC.