Anderson Inc., BDO Ltd., and Copper Inc., are three Canadian controlled private corporations. The common share ownership is as follows: Anderson Inc. - John Anderson owns 100 percent of the common shares of this Company. BDO Ltd. - John Anderson owns 30 percent of the common shares and his spouse, Wilma Anderson, owns 10 percent of the common shares. Basil Copper owns 35 percent of the common shares and his spouse, Holly Copper, owns 25 percent of the common shares. Holly Copper is John Anderson's sister. Copper Inc. - Basil Copper and Holly Copper each own 50 percent of the common shares of this Company. Required: Citing references to the Income Tax Act and using appropriate diagrams, explain the following:

1. Indicate which of the Companies described are associated. Explain your conclusions including references to the appropriate paragraph of the ITA.