Each of the following is an independent case involving ownership of voting shares of Canadian controlled private corporations. All of the corporations have taxation years that end on December 31 and have only one class of shares.

1. Ms. Sarah Brandt owns 100 percent of the voting shares of SB Inc. Her common-law partner, Ms. Melissa Frank, owns 100 percent of the shares of MF Inc.

2. John Brody owns 65 percent of the shares of Heresy Inc. His spouse, Jessica Brody, owns 85 percent of the shares of porter Inc. John and Jessica each own 35 percent of Lason Ltd.

3. Surcal Inc. owns 75 percent of the shares of Basik Inc. Basik Inc. owns 70 percent of the shares of Freon Ltd.

4. Martin Friedman owns 75 percent if the shares of Bloc Ltd. and 20 percent of the shares of Lorne Inc. Bloc Ltd. owns 25 percent of the shares of Lorne Inc, Martin's 12 year old son owns 25 percent of the shares of Lorne Inc. There are no other shareholders who hold shares in both companies.

5. Ms. Bright owns 75 percent of the shares of Aurora Ltd. and 20 percent of the shares of Bock Inc. Ms Favreau owns 80 percent of the shares of Bock Inc. and 20 percent of the shares of Aurora Ltd. Ms. Bright and Ms Favreau are not related.

Required: For each of the preceding cases, determine whether the corporations are associated. support your conclusions with references to specific provisions of ITA256. In order to assist you in answering this question, we have provided you with the content of ITA 256(1).

ITA 256 (1) Associated Corporations - For the purposes of this Act, one corporation is associated with another in a taxation year if, at any time in the year,

(a) one of the corporations controlled, directly or indirectly in any manner whatever, the other;

(b) both of the corporations were controlled, directly or indirectly in any manner whatever, by the same person or group of persons;

(c) each of the corporations was controlled, directly or indirectly in any manner whatever, by a person and the person who so controlled one of the corporations was related to the person who so controlled the other, and either of those persons owned, in respect of each corporation, not less than 25% of the issued shares of any class, other than a specified class, of the capital stock thereof;

(d) one of the corporations was controlled, directly or indirectly in any manner whatever, by a person and that person was related to each member of a group of persons that so controlled the other corporation, and that person owned, in respect of the other corporation, not less than 25% of the issued shares of any class, other than a specified class, of the capital stock thereof; or

(e) each of the corporations was controlled, directly or indirectly in any manner whatever, by a related group and each of the members of one of the related groups was related to all of the members of the other related group, and one or more persons who were members of both related groups, either alone or together, owned, in respect of each corporation, not less than 25% of the issued shares of any class, other than a specified class, of the capital stock thereof.