Problem 31 In early March , you were preparing your client list with respect to the personal tax return preparation season . When you came across Mr. Ricky's name You remembered that Mrs . Ricky had called you regarding her husband's death . Mr. Ricky had passed away March 1 , 2015 , at a` $2 . Mrs . Ricky is the executrix . Mr. Ricky owned and operated a Canadian - controlled private corporation , Shining Itd . Mr. Ricky's 100 shares had an adjusted cost base and paid - up capital of $55,000 . The fair market } of the shares at the date of death was $5, 750, 000. Mr. Ricky earned 50, 000 per month in salary , which is paid by direct deposit on the last day of month . A non - periodic bonus of $35 , 000 had been declared on February 15 , 2015 , but had not* been paid at the time of his death . In addition to his shares , Mr. Ricky owned bonds which earned $5, 500 of interest income in 20 and accrued 5917 of interest in 2015 to the date of his death . Further , Mr. Ricky had owned tw rental properties . Net rental income after capital cost allowance from January 1 , 2014 to DECED 31 , 2014 was $45,000 and net rental income before capital allowance was $4,000 for each of ty Months of January and February 2015 . Other Information ! ( 1 ) All assets of Shining Itd . have been used in the active business of the corporation . ( 2) The shares of Shining Itd. have been owned by Mr. Ricky since 1998. ( 3 ) Mr. Ricky had earned income in 2013 and 2014 of 595,000 . He contributed to his RRISE Maximum amount allowed as a deduction in 2014 . His BRIEF was worth $ 295, 000 at the time of his death . Mrs . Ricky is the designated beneficiary of his RRSP . ( 4) Mr. Ricky had not used any of his capital gains exemption . ( 5 ) All of Mr . Ricky's assets have been left to his wife , except for the two rental properties which are bequeathed to his 20 - year- old daughter . ( 5 ) The rental properties had the following details : Unit # 1 [Init # 2\\ Land Building* Land\\ Building* Fair market value $100,000 $100, 000 5120, 000 $80, 000 Capital cost 90, 000 72,000 1 10,000 83,000 LICE 50, 000 52, 0 The partner has asked you to prepare a memo to the tax file explaining the tax implications of * above information , the filing requirements for Mr. Ricky's tax returns and any planning* OF Portunities available