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BCE/Nortel Networks Plan of Arrangement Background Rights Plan Shareholders Letter Tax Information Calculator

(for Canadian shareholders only)
Please note that this is a hypothetical example. BCE suggests that shareholders consult their tax advisors

In the examples below, 100 shares of BCE were purchased at $20 per share resulting in an adjusted cost base (ACB) of $2,000. Because the Arrangement resulted in a distribution of 1.570386 shares of Nortel Networks for each BCE share held, 157 whole shares of Nortel Networks are received as well as a cheque for .0386 of a share.

Note: The questions in GREEN require that you fill in the corresponding field to receive a valid answer.


Example

Original total ACB		$2000 (1)
x		x
Allocation ratio		.3079
New total BCE ACB		$615.80 (2)
Total number of BCE shares		100 (3)
New BCE per share ACB		$6.158 (4)

Calculate your Adjusted Cost Base

Original total ACB		$ (1)
x		x
Allocation ratio		.3079
New total BCE ACB		$ (2)
Total number of BCE shares		(3)
New BCE per share ACB		$ (4)

Example

Original total ACB (same as (1) above)		$2000 (5)
x		x
Allocation ratio		.6921
New total Nortel Networks ACB		$1384.20 (6)
Total number of Nortel Networks shares		157.0386 (7)
New Nortel Networks per share ACB		$8.814 (8)

Calculate your Adjusted Cost Base

Original total ACB (same as (1) above)		$ (5)
x		x
Allocation ratio		.6921
New total Nortel Networks ACB		$ (6)
Total number of Nortel Networks shares		(7)
New Nortel Networks per share ACB		$ (8)

Example

Your new Nortel Networks per share ACB (from (8) above)		$8.814 (9)
x		x
Your number of fractional shares sold		0.0386 (10)
Your ACB for fractional shares		$.340 (11)

Calculate your Adjusted Cost Base

Your new Nortel Networks per share ACB (from (8) above)		$ (9)
x		x
Your number of fractional shares sold		(10)
Your ACB for fractional shares		$ (11)

Amount of fractional share cheque		$ (12)
Less		-
ACB for fractional shares sold (from (11) above)		$ (13)
Loss/Gain from fractional share sale		$ (14)