1. On June 1, 2019, Mrs A settled a painting on her daughters B and C, in trust for her grandchildren. The painting has a cost to Mrs A of $500 and a fair market value of $7,000

2. Mrs A Provides in her will that her shares of ABC Co. are to be held in trust for her grandchildren. These shares have a cost to Mrs A of $10,000 and a fair market value of $35,000

For each of the trusts settled by Mrs. A explain:

a. the tax consequences of the transfer of property by Mrs A to the trust;

b. the rate of tax payable by the trust;

c. the tax consequences of the transfer of property from the trust to the beneficiary