2. Taxation at Death

Sonia and Kyle are married and own the following assets:

Asset	Title	ACB	FMV
Home	Joint	$200,000	$450,000
QSBC Shares	Sonia	$50	$850,000
RRSP	Kyle		$225,000
RRSP	Sonia		$31,000
Mutual Funds - non-registered	Kyle	$490,000	$255,000

Sonia and Kyle have each written a will that leaves their entire estate to the other.

Questions: Show all reasoning and calculations

1. If Kyle dies first, what is the taxable income to include in his final tax return? Assume no other income.

2. If Sonia dies soon after, what is the taxable income to include in her final tax return? Assume no other income or change in asset values.

3. What will the probate fees be on Sonia's estate? Assume she lives on Ontario.