Me$,$ Dundastard, a Canadian resident, has owned all of the shares of Dundas Distributors Inc. $($DD$)$ for over $10$ years. She is also the president and the key employee of the corporation which carries on a wholesale distribution business in the Niagara Peninsula of Ontario. The corporation's asset mix has been quite stable for the past three years. The corporate Balance Sheet at September $30,2023,$ and appraised fair market values $($FMV$),$ shows the following:AssetsCashBalance SheetFMV$3,600$$$3,600$Accounts receivable $($net of $$1,500$ allowance$)$Inventory$13,400190,00012,700200,000$Term deposits$155,000155,000$Shares in Trading Spaces Suppliers Ltd$.($TSSL$)23\mathrm{.}00018,700$Land$140,000215,000$Building, fixtures and equipment $($net of amortization$)215,000305,000$$$740,000$$$910,000$LiabilitiesAccounts payable$ $18,000$Future income taxes$45\mathrm{.}000$Long$-$term debt$325\mathrm{.}000388,000$CapitalCommon shares$1,000$Retained earnings$351,000$$$740,000$When the above assets were appraised, a valuation of the corporation's customer lists and goodwill, due to location and management, determined that they were worth $$90,000.$The term deposits represent a build$-$up of surplus funds that have not been required in DDI's business over the last several years.The shares owned by DDI in TSSL are common shares and amount to $18\%$ of the total FMV of TSSL common shares. TSSL$,$ which has no investment assets, is a CCPC carrying on its business across southern Ontario and is a supplier to DDI.Ms$.$ Dundastard is considering a transaction that will realize her capital gains exemption, none of which she has used to date.Required:$($A$)$ Advise Ms$.$ Dundastard on whether her shares in DDI can be considered to be qualified small business corporation shares $($QSBCS$).$ If not, advise her on the most tax effective steps that should be taken to ensure that the shares qualify.$($B$)$ As part of the plan that she is considering and ignoring any steps recommended in Part $($A$),$ Ms$.$Dundastard will transfer her shares to a holding corporation which she will incorporate with her husband, so that she and her husband will each own $50\%$ of the common shares of the holding corporation. In return for her shares in DDI, she will receive preferred shares with a FMV of $$657,000,$ which is equal to the FMV of her common shares in DDI. The preferred shares will pay a $3\%$ dividend annually. Her husband stays home to look after the couple's three young children and is a part$-$time PhD student in socialist philosophy. If DDI builds up too much in non$-$active investment assets in future years, explain why section $74\mathrm{.}4$ would apply and show the results of its application. Assume a prescribed interest rate of $4\%.$