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M incorporated a business and allocated some of the shares to her 1 0 year - old child. The child paid for the shares with

M incorporated a business and allocated some of the shares to her 10 year-old child. The child paid for the shares with funds received from a grandparents estate. During the current year the child received dividends of $5,000 from the corporation but has no other income. These dividends are taxable at the highest marginal tax rate. Is this statement true or false?

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