Problem below is from the study guide of introduction to federal income taxation in Canada:

In early March, you were preparing your client list with respect to the personal tax return preparation season. When you came across Mr. Rickys name you realized that Mrs. Ricky had called you regarding her husbands death. Mr. Ricky had passed away in Mar 1, 2016, at age 62

Mr. Ricky owned and operated a Canadian-controlled private corporation, Shinning Ltd, involved in reconditioning cars. Mr Rickys 100 shares had an adjusted cost base and paid-up capital of $55,000. The fair market value of the shares at the date of death was $750,000. Seventy-five percent of the shares were left to his wife and the rest of the shares were left to his 25 year old son

Mr Ricky earned $15,000 per month in salary, which is paid by direct-deposit on the last day of the month. A non-periodic bonus of $35,000 had been declared of Feb 15, 2016, but had not yet been paid at the time of his death. His accumulated vacation pay of $10,000 was due on the last day of the month, but was paid on Mar 10, 2016.

In addition to his shares, Mr. Ricky owned bonds which earned $5,500 of interest income in 2015 and accrued $917 of interest in 2016 to the date of his death. He owned another bond on which there was $500 in uncashed bond interest due on Jan 4 2016, the anniversary date of that bond. Further, Mr Ricky has owned two rental properties, Net rental income after capital cost allowance from Jan 1 2015 to Dec 31 2015 was $45,000 and the net rental income before capital cost allowance was $4,000 for each of the months of Jan and Feb 2016.

Other Information:

• All assets of Shinning Ltd have been used in the active business of the corporation
• The shares of Shinning Ltd have been owned by Mr Ricky since 1999
• Mr Ricky had earned income in 2014 and 2015 of $95,000. He contributed to his RRSP the minimum amount allowed as a deduction in 2015. His RRSP was worth $295,000 at the time of his death. Mrs Ricky is the designated beneficiary of his RRSP
• Mr Ricky had a savings/chequing account which earned $2,500 interest in 2015 and $150 during Jan and Feb 2016
• Mr Ricky had utilized $350,000 of his capital gain exemption
• All of Mr Rickys other assets have been left to his wife, except for the two rental properties which are bequeathed to his 20 year old daughter
• The rental properties had a fair market value of $100,000 each. Both properties had the following details:

Capital cost for unit 1 is $72,000 and Unit 2 is $83,000

UCC for unit 1 is $50,000 and Unit 2 is $52,000

The partner has asked you to prepare a letter, in draft form, to Mrs Ricky explaining the tax implications and the filing requirements in respect of Mr Rickys death. Calculate taxable income for 2016