Pere gifted shares in a public corporation with a FMV of $50,000 to his 12 year old son, Fils. After Fils received $1,000 in eligible dividends, the shares were sold for $53,000. What are the income tax consequences of the dividend and the sale?

Pere will include the grossed-up dividends of $1,380 in his income, be entitled to a dividend tax credit of $207 [(6/11)($380)] and Fils will include the taxable capital gain of $1,500 in his income.

Fils will include the grossed-up dividends of $1,380 in his income,m be entitled to a dividend tax credit of $207 and a taxable capital gain of $1,500 in his income.

Pere will include the grossed-up dividends of $1,380 in his income, be entitled to a dividend tax credit of $207 and a taxable capital gain of $1,500 in his income.

Fils will include the grossed-up dividends of $1,380 in his income, be entitled to a dividend tax credit of $207 and Pere will claim the taxable capital gain of $1,500 in his income.

Question

Pere gifted shares in a public corporation with a FMV of $50,000 to his 12 year old son, Fils. After Fils received $1,000 in eligible dividends, the shares were sold for $53,000. What are the income tax consequences of the dividend and the sale?

		Pere will include the grossed-up dividends of $1,380 in his income, be entitled to a dividend tax credit of $207 [(6/11)($380)] and Fils will include the taxable capital gain of $1,500 in his income.
		Fils will include the grossed-up dividends of $1,380 in his income,m be entitled to a dividend tax credit of $207 and a taxable capital gain of $1,500 in his income.
		Pere will include the grossed-up dividends of $1,380 in his income, be entitled to a dividend tax credit of $207 and a taxable capital gain of $1,500 in his income.
		Fils will include the grossed-up dividends of $1,380 in his income, be entitled to a dividend tax credit of $207 and Pere will claim the taxable capital gain of $1,500 in his income.

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Pere gifted shares in a public corporation with a FMV of $50,000 to his 12 year old son, Fils. After Fils received $1,000 in eligible

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