During the year, Tom gifted to his 17 year old son, Brent, shares in Royal Bank that he had originally bought for $1,000. At the time of the gift, the shares were worth $10,000. Brent received $500 in dividend income from the Royal Bank shares. Later in the year, Brent sold the shares for $11,000.

Explain the tax implications of the transactions. Who should report the dividend income and the capital gains on the two sales and the amounts?