It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers.

One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the acquisition of control rules. Also, given the list of GSCs 2018 expenditures in Exhibit I, calculate the total 2018 expenses that are deductible in 2018 when computing net income for tax purposes. GSC is very profitable and wants to claim the maximum amount of deductions possible. You do not need to comment on non-deductible items.