<P> Adjusted cost base (ACB) is a calculation used to determine the cost of an investment for tax purposes . The Canada Revenue Agency requires investors to use the ACB calculation when determining capital gains or losses for income tax purposes on Schedule 3 . </P> <P> In Mutual Funds: </P> <Table> <Tr> <Td> <P> ACB = initial investment + additional contributions + reinvested distributions - amount of any previous redemptions </P> </Td> </Tr> </Table> <Tr> <Td> <P> ACB = initial investment + additional contributions + reinvested distributions - amount of any previous redemptions </P> </Td> </Tr>

Adjusted cost base at the time of disposition