An individual gifts shares of a Canadian public company to a Canadian registered charity. The shares had a value of $80,000 and an adjusted cost base (ACB) of $10,000. What would be the tax consequences to the donor?

Multiple Choice

The capital gain would be nil. The individual would also benefit from the donation tax credit (see Chapter 10) would be based on the $70,000 increase in the value of the shares.

The capital gain would be $70,000. The individual would also benefit from the donation tax credit (see Chapter 10) would be based on the $80,000 current value of the shares.

The capital gain would be $35,000. The individual would also benefit from the donation tax credit (see Chapter 10) would be based on the $80,000 current value of the shares.

The capital gain would be nil. The individual would also benefit from the donation tax credit (see Chapter 10) would be based on the $80,000 current value of the shares.