Kellye Nakahara has a significant investment portfolio and is trying to teach her daughter, Lani (age 15) the importance of investing. Lani When Lani turned 14 in 2021, Kellye decided it was time for her to begin investing on her own. Kellye gave Lani $50,000 of treasury bills to get her started. The T-bills paid Lani interest of $1,500 in 2021. In 2022, Lani kept the $50,000 of T-bills invested and earned $2,500 in interest in 2022 , but the $1,500 earned the prior year was used to invest in shares of Hawkeye Inc., a public company making drones. These shares paid eligible dividends of $100 to Lani in 2022. Kellye The following details Kellye's investment portfolio at the end of 2021 : - Canada Savings Bonds - 4\% compounding annual interest; \$100,000 purchased on March 1 , 2020; principal and interest due February 28, 2025 - 5000 shares of Radar Co., an eligible small business corporation; ACB: $30,000 - 100 shares of Klinger Wrap Inc., a public company; ACB: $10,000 - 250 shares of Hot Lips Makeup Company, a public company; ACB: $8,000 - 500 shares of Trapper Hunting Trips Ltd., a qualifying small business corporation, ACB: $25,000 - 250 acres of land outside Cobourg, ON., ACB: $750,000 (not farming/fishing property) Kellye made the following transactions in 2022 : - On May 31, 2022, she sold half of the Canada Savings Bonds for their principal amount plus accrued interest. - On July 5, 2022, she sold all the shares of Radar Co. for $50,000 and purchased another 600 shares of Klinger Wrap Inc. for $200/ share. - On October 10, 2022, she sold 150 shares of Hot Lips Makeup Company for $2,000. - On October 20, 2022, she sold all 500 shares of Trapper Hunting Trips Ltd. for $60,000. - On October 28, 2022, she purchased 15,000 shares of Hunnicutt Ltd., an eligible small business corporation for $40,000. - On November 16, 2022, she sold 300 shares of Klinger Wrap Inc. for $260/ share. - On December 7, 2022, she sold 150 acres of the land near Cobourg for $600,000. All acres were considered equivalent to each other in terms of value. The buyer paid $250,000 upfront, and is paying the remaining $350,000 in equal parts over the next three years. Other information: - Radar Co. paid non-eligible dividends of $3,000 to Kellye before she sold the shares. - Trapper Hunting Trips Ltd. paid a $20,000 capital dividend to Kellye before she sold the shares. - Kellye has used $100,000 of her lifetime capital gains exemption in the past. - Kellye has $275,000 of employment income. Lani has no other income. Required - a) Calculate Lani and Kellye's minimum net income for tax purposes and taxable income. Ignore any impacts of CPP in 3(c). b) Determine the \# units held and the total ACB of those units for each of Kellye's shareholdings at the end of 2022. c) Calculate the amount of lifetime capital gains exemption that Kellye has left at the end of 2022. Kellye Nakahara has a significant investment portfolio and is trying to teach her daughter, Lani (age 15) the importance of investing. Lani When Lani turned 14 in 2021, Kellye decided it was time for her to begin investing on her own. Kellye gave Lani $50,000 of treasury bills to get her started. The T-bills paid Lani interest of $1,500 in 2021. In 2022, Lani kept the $50,000 of T-bills invested and earned $2,500 in interest in 2022 , but the $1,500 earned the prior year was used to invest in shares of Hawkeye Inc., a public company making drones. These shares paid eligible dividends of $100 to Lani in 2022. Kellye The following details Kellye's investment portfolio at the end of 2021 : - Canada Savings Bonds - 4\% compounding annual interest; \$100,000 purchased on March 1 , 2020; principal and interest due February 28, 2025 - 5000 shares of Radar Co., an eligible small business corporation; ACB: $30,000 - 100 shares of Klinger Wrap Inc., a public company; ACB: $10,000 - 250 shares of Hot Lips Makeup Company, a public company; ACB: $8,000 - 500 shares of Trapper Hunting Trips Ltd., a qualifying small business corporation, ACB: $25,000 - 250 acres of land outside Cobourg, ON., ACB: $750,000 (not farming/fishing property) Kellye made the following transactions in 2022 : - On May 31, 2022, she sold half of the Canada Savings Bonds for their principal amount plus accrued interest. - On July 5, 2022, she sold all the shares of Radar Co. for $50,000 and purchased another 600 shares of Klinger Wrap Inc. for $200/ share. - On October 10, 2022, she sold 150 shares of Hot Lips Makeup Company for $2,000. - On October 20, 2022, she sold all 500 shares of Trapper Hunting Trips Ltd. for $60,000. - On October 28, 2022, she purchased 15,000 shares of Hunnicutt Ltd., an eligible small business corporation for $40,000. - On November 16, 2022, she sold 300 shares of Klinger Wrap Inc. for $260/ share. - On December 7, 2022, she sold 150 acres of the land near Cobourg for $600,000. All acres were considered equivalent to each other in terms of value. The buyer paid $250,000 upfront, and is paying the remaining $350,000 in equal parts over the next three years. Other information: - Radar Co. paid non-eligible dividends of $3,000 to Kellye before she sold the shares. - Trapper Hunting Trips Ltd. paid a $20,000 capital dividend to Kellye before she sold the shares. - Kellye has used $100,000 of her lifetime capital gains exemption in the past. - Kellye has $275,000 of employment income. Lani has no other income. Required - a) Calculate Lani and Kellye's minimum net income for tax purposes and taxable income. Ignore any impacts of CPP in 3(c). b) Determine the \# units held and the total ACB of those units for each of Kellye's shareholdings at the end of 2022. c) Calculate the amount of lifetime capital gains exemption that Kellye has left at the end of 2022