To calculate Franco’s total capital gain, we adjust the adjusted cost base (ACB) for reinvested distributions and return of capital (ROC).

Initial ACB: $30,000.

Add Reinvested Distributions: Reinvested distributions increase the ACB.30,000+1,750=31,75030,000 + 1,750 = 31,75030,000+1,750=31,750

Subtract Return of Capital: ROC reduces the ACB.31,750−850=30,90031,750 - 850 = 30,90031,750−850=30,900

Calculate the Capital Gain: Subtract the adjusted ACB from the sale price.39,000−30,900=8,10039,000 - 30,900 = 8,10039,000−30,900=8,100

A. $1,250: Incorrect, likely a miscalculation of adjusted ACB.

B. $8,100: Correct, based on accurate ACB adjustments and sale price.

C. $6,400: Incorrect, ignores reinvested distributions.

D. $9,000: Incorrect, ignores the impact of ROC adjustments on ACB.

Step-by-Step Calculation:Explanation of Options:References:

CSC Volume 2, Chapter 19: Adjusted Cost Base Calculations, which explains the impact of reinvested distributions and ROC on capital gains​.