Please do the Assigmnet Problem 9-5

Sorry Please do the Assigment Problem 9-6

Assignment Problem Nine - 5 (Other Income And Deductions Including RESP) Viva Houde's divorce settlement resulted in her having custody of her two children. Her daughter Lacy is 8 years old and her son Mark is 10 years old. They are both in good health. The agreement calls for her to receive child support payments of $2,000 per month, as well as spousal support of $1,500 per month. During 2019, she received all of these payments. In order to get a fresh start in life, she enrolled in a co-op program at Western University in London, Ontario. She was very successful during the winter term (January through April, 2019). The program requires her to work in her field during the summer, with her first place. ment being Timmins, Ontario during the period May to August, 2019. Her employment income for this period was $8,000. In late August she returned to London and resumed full time studies during the fall term (September through December, 2019). She was also able to obtain a part time job in her field in London. During these four months she had employment income of $1,600. The eligible moving costs associated with moving herself and her children to Timmins for the summer work term totaled $1,200. The costs for the move back to London were $1,350. In addition to her support payments and employment income, Viva received the following amounts: Scholarship Granted By University For The Fall Semester 4,300 Eligible Dividends Received 2,600 Inheritance from Rich Uncle 22,000 TESA Withdrawal 4,000 Throughout the year, Viva required assistance with her children. During the period January through April, the costs in London totaled $1,950. In Timmins, she incurred costs of $1,725. After returning to London for the fall term, her costs for the September through December period were $2,175. During 2019, Viva establishes RESPs for both of her children. She contributes $1,500 to each of these plans. Required: Determine the minimum Net Income For Tax Purposes that Viva will report for the 2019 taxation year. Provide reasons for omitting items that you have not included in your calculations. Also, indicate any amounts that can be carried forward to future years. Assignment Problem Nine - 6 (Non-Arm's Length Transfer Of Shares) Ms. Jody Wales owns shares in a Canadian public company that she acquired several years ago at a cost of $220,000. The shares have a current fair market value of $426,000. Ms. Wales and her husband, Jim, have three children. Their daughter Kim is 20 years old, while their sons Jeff and Jerry are respectively 22 and 24 years old. On November 1 of the current year, Ms. Wales is considering the following alternatives for disposing of the securities: 452 Chapter 9 Assignment Problems A. Selling the shares to her daughter for $220,000, B. Gifting the shares to her older son, Jerry. C. Selling the shares to her younger son, Jeff, for $500,000. Required: Indicate the immediate tax consequences to Ms. Wales that will result from making each of the transfers described. In addition, indicate the adjusted cost base of the shares to the transferee. Assignment Problem Nine - 7 (Non-Arm's Length Transfer of Depreciable Asset) During 2019, Joan Zelig sells three depreciable assets. In each case, the asset that is sold is the last one in its class. Asset 1 has a capital cost of $150,000 and, at January 1, 2019, the UCC balance in its class is $103.883. The asset is sold to Joan's sister for its fair market value of $115,000. Asset 2 has a capital cost of $140,000 and, at January 1, 2019, the UCC balance in its class was $58,310. The asset is sold to Joan's father for its fair market value of $35,000. Asset 3 has a capital cost of $95,000 and, at January 1, 2019, the UCC balance in its class was $82,369. The asset is sold to Joan's mother for its fair market value of $107,000 Required: For each of the three dispositions, indicate the tax consequences for Joan that result from the sale. In addition, indicate the tax values that will be used by the transferee subsequent to the transfer Assignment Problem Nine - 8 (Deemed Dispositions On Death And Emigration) Mr. Howard Caswell is 67 years of age and his spouse, Charlene, is 58. They have one son, John, who is 36 years of age. On September 1 of the current year, Mr. Howard Caswell owns the following properties: Rental Property Mr. Caswell owns a rental building that was acquired at a cost of $120,000. This includes an estimated value for the land on which the building is situ- ated of $25,000. On September 1 of the current year, the building's UCC is $67,000. As of this date, the fair market value of the property has increased to 5158,000, including an unchanged value for the land of $25,000. General Industries Ltd. Mr. Caswell owns 5,000 shares of General Industries Ltd., a Canadian public company. These shares have a cost of $200,000 and a current fair market value of $350,000. Mr. Caswell has never owned more than 3 percent of the outstanding shares of this Company Farm Land Mr. Caswell owns farm land with a cost of $325,000 and a current fair market value of $550,000. The land is farmed on a full time basis by Mr. Caswell's son, John. Caswell Enterprises Mr. Caswell owns 100 percent of the voting shares of Caswell Enterprises, a Canadian controlled private corporation. The Company was estab- lished with an investment of $275,000 and it is estimated that the current fair market value of the shares is $426,000. Caswell Enterprises is not a qualified small business corporation for purposes of the lifetime capital gains deduction Assume that no elections are made and that normal deemed disposition values apply