Mr. Smith owns 100% of the common shares of Corporation A.

Mrs. Smith, spouse of Mr. Smith, owns 100% of the common shares of Corporation B.

Mr. Smith and Mrs. Smith each own 50% of the common shares of Corporation C.

Mr. Jones (a friend of Mr. Smith) and Mr. Smith each own 50% of the common shares of Corporation D. None of the corporations has filed any elections during the year.

Which of the following statements is true?

Question 1 options:

Corporation A and Corporation B are not associated.

Corporation A and Corporation C are associated.

Corporation A and Corporation D are associated.

Corporation B and Corporation D are associated.