At the end of $2023,$ Mr$.$ Violette sold both his city home and his summer cottage$.$ Every year he has spent time at the cottage with his family. The two properties are used exclusively for personal purposes. Relevant information for the two properties is as shown.

View the relevant information for the properties.

Mr$.$ Violettewishes to minimize income tax with respect to the sale of the two properties.

Required

Describe how the principal residences should be designated in order to accomplish Mr$.$ Violette'sincome tax minimization goal. In addition, calculate the amount of the total capital gain as a result of the designation that you have recommended.

In this step, calculate the capital gain on the two properties.

$\backslash$table$[[$Proceeds of disposition$],[],[$Less: Adjusted cost base,,$],[$Less: Real estate commissions,,$],[$Capital gain,,$]]$

Relevant Information for the Properties

$\backslash$table$[[,,$Home,Cottage$],[$Year purchased,,$2007,2007],[$Cost$,$$$,268,000$$$,41,000],[$POD$,,525,000,334,000],[$Real estate commission,,$33,000,14,500]]$