About five years ago, Guiseppe, Cristina, Giovanni and Brunco formed a partnership to carry on a snow removal and landscape business. All the partners, except Cristina, made an initial contribution of $40,000. Cristina made an initial contribution of $80,000. Each agreed to share in the profits and losses of the practice based on their initial capital contribution. At the end of the 2008 fiscal year of the partnership, Cristina and Brunco decided to go their separate ways. Brunco received $125,000 for his partnership interest, while Cristina received $250,000. The tax records for the five years ended December 31, 2007 reflected the following cumulative amounts:

* Cristina, $170,000; Guiseppe, $150,000; Brunco, $250,000; and Giovanni, $160,000.
Financial results for the year ended December 31, 2008, are as follows:

Other Information
(1) Cristina is single, and has interest income of $2,500 for the year 2008.
(2) Brunco is divorced, has interest income of $6,600, and paid his former spouse $16,000 for her support in 2008. He has made an RRSP contribution in 2008 of $2,700 (his 2007 earned income was $15,000).
REQUIRED
(A) Compute the partnership income for the year ended December 31, 2008, and the income to be allocated to the partners.
(B) What are the tax consequences to Brunco and Cristina as a result of the disposition of their partnership interests in 2008?
(C) Compute Brunco's and Cristina's taxable income and tax payable for 2008 using the hypothetical provincial tax rate table presented in Chapter 10, ¶10,130.

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Income (before capital gans) from operations for tax purposes Losses Capital gans (to 2007) Drawings by the partners Charitable donations (added back to Division B income for tax purposes) S 750,000 0,000 10,000 l gams) from o 730,000 15,000 Net income per fin ancial statem ents S 60,000 Charitable donations (deducted from accounting in come) 2,000 Drawings Cristina Brunco Guiseppe Giovanni 10,000 5,000 5,000 4,000