1. Mr. Renaud and Ms. Fortune have lived together for over 15 years and have three children.The ages of the children at the end of the current year are 3, 11, and 15.All three children enjoy good mental and physical health.Mr. Renaud works as a carpenter and has receivedgross income for the year of $52,000.However, his net income was only$12,000

Ms. Fortune has business income of $62,000, all of which she reports.As Mr. Renaud is the lower income spouse, he receives $1,680 in universal child care benefits during the current year.The child care costs for the current year, all paid for by cheque and properly documented for tax purposes, total $11,200.

Determine the maximum deduction for child care costs and indicate who should claim them.

2. Income Attribution

Sandy gives a gift of $12,000 to each of the following people.Each of them used the money they received from Sandy to invest in shares of publicly trading companies.In which situation will the resulting dividend income NOT be attributed to Sandy?

A.The gift is to Sandy's long-time business partner.

B.The gift is to Sandy's wife.

C.The gift is to Sandy's 14 year old nephew.

D.The gift is to Sandy's 10 year old daughter.