#1)	Dr. No just cannot seem to say no. When people ask him for things, he tries to comply.

1.	Dr. No gave his wife 100 shares in Goldfinger Enterprises in 2017 (no cash changed hands). He had originally purchased the shares for $10,050 in 2010 and they are currently worth $13,520. Mrs. No received taxable dividends of $650 during 2017.

2.

James, the 15-year-old son of Dr. No asked his father for some of his shares in Goldfinger Enterprises; however, Dr. No felt James should pay something for the shares. Dr. No sold James 25 shares for $1,100 in 2017. The adjusted cost base of the shares was $2,500 and they were currently worth $3,333. James received taxable dividends of $162.50 during 2017. Early in 2018, James sold the shares for $4,500.

3.

Mr. Jaws, Dr. Nos brother-in-law, recently retired and Dr. No has given him a retirement gift of 10 shares in Goldfinger Enterprises. This event happened early in 2017. The shares had an adjusted cost base of $1,000 and were valued at $1,500 at the time of the gift. Mr. Jaws received taxable dividends of $65 in 2017.

REQUIRED:

Indicate the tax effects of the above transactions for Dr. No, Mrs. No, James No, and Mr. Jaws.

Include any calculations that are required and indicate which individual would have the tax consequences resulting from the final sale of the shares.