For each of the following independent transactions, determine the minimum amount of net income or loss for tax purposes and the taxpayer to which it applies. 1 A woman purchased a $10,000 bond for her 15-year-old daughter. During the year, the bond paid interest of $1,000. Person who reports taxable income Taxable income Type of Income Mother $ 1,000 interest income 2 A woman gifted to her husband shares of a public corporation, for which she had paid $15,000. At the time of the gift, the shares had a value of $30,000. After receiving the gift, husband received a dividend of $1,000 and then sold the shares for $26,000. Person who reports taxable income Taxable income Type of Income 3 A student who is 20 years old borrowed $20,000 from his mother and used the funds to purchase shares in a public corporation. After receiving a dividend of $1,000, the student sold the shares for $24,000. Person who reports taxable income Taxable income Type of Income $ Student Student 1,380 dividend income 2,000 taxable capital gain $ A student who is 17 years old borrowed $20,000 from his mother and used the funds to purchase shares in a public corporation. After receiving a dividend of $1,000, the student sold the shares for $24,000. Person who reports taxable income Taxable income Type of Income Mother 1,380 dividend income I Mother 2000 taxable capital gain 4 A man loaned money to his wife, who used the borrowed funds to purchase a rental property. During the year, the rental property earned net rentals of $7,000. The amount of the loan, which is interest-free, is $60,000. Person who reports taxable income Taxable income Type of Income A man loaned money to his wife, who used the borrowed funds to purchase a rental property. During the year, the rental property earned net rentals of $7,000. The amount of the loan, is $60,000. The loan is subject to a reasonable interest rate of 6% and was secured by a mortgage on the rental property. Person who reports taxable income Taxable income Type of Income A man gifted common shares of a Canadian-controlled private corporation to his 16-year-old daughter. At 5 the time of the gift, the shares were valued at $10,000. Their original cost was $6,000. During the year, the daughter received a non-eligible dividend of $1,000 and subsequently sold the shares for $15,000. Person who reports taxable income Taxable income Type of Income 6 A woman contributed $5,000 to her husband's TFSA. The funds were invested in bonds earning interest and earned $500. Person who reports taxable income Taxable income Type of Income For each of the following independent transactions, determine the minimum amount of net income or loss for tax purposes and the taxpayer to which it applies. 1 A woman purchased a $10,000 bond for her 15-year-old daughter. During the year, the bond paid interest of $1,000. Person who reports taxable income Taxable income Type of Income Mother $ 1,000 interest income 2 A woman gifted to her husband shares of a public corporation, for which she had paid $15,000. At the time of the gift, the shares had a value of $30,000. After receiving the gift, husband received a dividend of $1,000 and then sold the shares for $26,000. Person who reports taxable income Taxable income Type of Income 3 A student who is 20 years old borrowed $20,000 from his mother and used the funds to purchase shares in a public corporation. After receiving a dividend of $1,000, the student sold the shares for $24,000. Person who reports taxable income Taxable income Type of Income $ Student Student 1,380 dividend income 2,000 taxable capital gain $ A student who is 17 years old borrowed $20,000 from his mother and used the funds to purchase shares in a public corporation. After receiving a dividend of $1,000, the student sold the shares for $24,000. Person who reports taxable income Taxable income Type of Income Mother 1,380 dividend income I Mother 2000 taxable capital gain 4 A man loaned money to his wife, who used the borrowed funds to purchase a rental property. During the year, the rental property earned net rentals of $7,000. The amount of the loan, which is interest-free, is $60,000. Person who reports taxable income Taxable income Type of Income A man loaned money to his wife, who used the borrowed funds to purchase a rental property. During the year, the rental property earned net rentals of $7,000. The amount of the loan, is $60,000. The loan is subject to a reasonable interest rate of 6% and was secured by a mortgage on the rental property. Person who reports taxable income Taxable income Type of Income A man gifted common shares of a Canadian-controlled private corporation to his 16-year-old daughter. At 5 the time of the gift, the shares were valued at $10,000. Their original cost was $6,000. During the year, the daughter received a non-eligible dividend of $1,000 and subsequently sold the shares for $15,000. Person who reports taxable income Taxable income Type of Income 6 A woman contributed $5,000 to her husband's TFSA. The funds were invested in bonds earning interest and earned $500. Person who reports taxable income Taxable income Type of Income