B/Study Guide - Assignment Problems iloerer, they have agreed that Sally needs to transfer 50% of her shares to Harry as part of the sully's shares have a fair market value of $40 , 000 and an adjusted cost base of $25 , 000 . They would like you to explain the tax consequences of this transfer. problem 8 Mr. and Mrs. Grand are married with one child, Noah, who is 16 years old. Mr. Grand owns his own ineses, which he operates out of a company called Father Ine. He owns all the shares. Mrs. Grand inisher own business, which she operates out of a company called Mother Ine. She owns all the shares Identify, with reference to the Act, who is: - Related - Affiliated -Arm's length Problem 9 On October 1, Roxanne acquired her brother's West Vancouver condominium rental property for \$ \$ 00,000 (ignore any land portion). Her brother has owned it for five years and had a capital gain of \$50,000 on selling it to Roxanne. He will include 50% of that in his income. Roxanne believes she can em net rental income of $9 , 000 annually, and 1/4 of that amount for the final quarter of this year. Roxanne has asked you to calculate the maximum CCA that she may claim in this first taxation year. Problem 10 During 2021, Madame Martel exercised a stock option that she held in her employer (a public mompany). It is now November 2022. She is currently contemplating a number of scenarios in terms of the shares she received under the 2021 stock option exercise. She has asked you to explain the tax monsequences of her actual and contemplated transactions. The details of the stock option exercised during 2021 are as follows. The current fair market value of a share is $42 . Madame Martel is married and has two children (ages 21 and 15). She is expecting large dividends To be paid on the above shares in December 2022 and each December on an ongoing basis. She also expects that the shares will increase in value quite considerably over the near future. As a result, she is koking for a means of splitting income with her immediate family. She is proposing the following Henarios in terms of distributing these shares amongst her immediate family: (1) gift the shares to her spouse and children ( 1/3 to her spouse and 1/3 to each child); (2) sell the shares to her spouse and children ( 1/3 to her spouse and 1/3 to each child) for cash lroceeds of $20 per share; or (3) sell the shares to her spouse and children ( 1/3 to her spouse and 1/3 to each child) in exchange for inote payable of $42 per share. The note payable described in (3), above, will be payable over five years with no interest. Since the The note payable described in (3), above, will be payable over five years osent value of the note is pere pays no interest and is repayable over future years, the estimated presen share. Madame Martel has asked you to prepare a memorandum explaining the income tax consequences of her completed and proposed transactions. .

1. B/Study Guide - Assignment Problems iloerer, they have agreed that Sally needs to transfer 50%
of her shares to Harry as part of the sully's shares have a fair market value of $40 , 000 and an
adjusted cost base of $25 , 000 . They would like you to explain the tax consequences of this
transfer. problem 8 Mr. and Mrs. Grand are married with one child, Noah, who is 16 years old.
Mr. Grand owns his own ineses, which he operates out of a company called Father Ine. He owns
all the shares. Mrs. Grand inisher own business, which she operates out of a company called
Mother Ine. She owns all the shares Identify, with reference to the Act, who is: - Related -
Affiliated -Arm's length Problem 9 On October 1, Roxanne acquired her brother's West
Vancouver condominium rental property for $ $ 00,000 (ignore any land portion). Her brother
has owned it for five years and had a capital gain of $50,000 on selling it to Roxanne. He will
include 50% of that in his income. Roxanne believes she can em net rental income of $9 , 000
annually, and 1/4 of that amount for the final quarter of this year. Roxanne has asked you to
calculate the maximum CCA that she may claim in this first taxation year. Problem 10 During
2021, Madame Martel exercised a stock option that she held in her employer (a public
mompany). It is now November 2022. She is currently contemplating a number of scenarios in
terms of the shares she received under the 2021 stock option exercise. She has asked you to
explain the tax monsequences of her actual and contemplated transactions. The details of the
stock option exercised during 2021 are as follows. The current fair market value of a share is $42
. Madame Martel is married and has two children (ages 21 and 15). She is expecting large
dividends To be paid on the above shares in December 2022 and each December on an ongoing
basis. She also expects that the shares will increase in value quite considerably over the near
future. As a result, she is koking for a means of splitting income with her immediate family. She
is proposing the following Henarios in terms of distributing these shares amongst her immediate
family: (1) gift the shares to her spouse and children ( 1/3 to her spouse and 1/3 to each child);
(2) sell the shares to her spouse and children ( 1/3 to her spouse and 1/3 to each child) for cash
lroceeds of $20 per share; or (3) sell the shares to her spouse and children ( 1/3 to her spouse and
1/3 to each child) in exchange for inote payable of $42 per share. The note payable described in
(3), above, will be payable over five years with no interest. Since the The note payable described
in (3), above, will be payable over five years osent value of the note is pere pays no interest and
is repayable over future years, the estimated presen share. Madame Martel has asked you to
prepare a memorandum explaining the income tax consequences of her completed and proposed
transactions.