Mr. Lee owns two properties in British Columbia; a four-bedroom family home and a summer cottage. Sam purchased the family home for $400,000 in 2004. In 2012, he purchased the summer cottage for $625,000. In all subsequent years, Sam and his family spent at least a portion of the year living in each of the two homes. When they are not residing in these properties, they are left vacant. On January 1st, 2023, Sam sold the cottage for $800,000. In 2023, Mr. Lee and his family decided to relocate to the USA, and he sold his family home on November 21st, 2023, for $1,200,000. Required: Describe how the two residences should be designated to minimize any capital gains resulting from the sale of the two properties. In addition, calculate the amount of the taxable capital gains that would arise under the designation that you have recommended. Show all supporting calculations