Problem 13-9 [Cont] (e) Mr. Ego's wife owns all the shares in Hair Inc., which owns and operates a hair styling salon. All the assets of Hair Inc. are used in an active business carried on in Canada. Mr. Ego loaned Hair Inc. $10,000 interest-free on January 1, 2016. No repayments have been made on the loan as at the date of the audit. (f) Mr. Ego wishes for his wife and his two sons to each have a $1,000 compound-interest Canada Savings Bond. He currently has three such bonds. He thinks that by his wife and children owning the bonds, less income tax will be paid on interest. His two children are currently 16 and 20 years of age. He is considering getting the bonds into their hands by one of the following methods: [1) giving the bonds to them without receiving any financial consideration in return; or (ii) loaning them the uids, interest-free, to enable them to purchase similar bonds. Reguired: Discuss the income tax implications of the foregoing information, providing any advice to Mr. Ego that you consider necessary. Support your answer with calculations where appropriate. Ignore the effects of leap year. Note: assume the prescribed interest rates for 2016 were: lst quarter 3% 2nd quarter 2% 3rd quarter 5% 4th quarter 5%