Question 4 2 pts Mr Smith owns 5 0 0 IBM shares with an ACB of $ 7 a share Mr Smith wishes to gift to his son who is 1 5 years old on January 1 s t , 2 0 2 3 The FMV at the time was $ 1 0 a share The shares paid a dividend in each year of $ 1 , 0 0 0 Five years later the son sold the shares on the open market for $ 1 6 a share What are the tax consequences The capital gain of ( $ 1 6 $ 7 $ 9 5 0 0 $ 4 , 5 0 0 ) when the shares are sold will not be attributed back to M r Smith but dividend received from the share each year will be attributed back to Mr Smith until the year in which the son turns 1 8 years of age The capital gain ( $ 1 6 $ 1 0 $ 6 5 0 0 $ 3 , 0 0 0 ) when the shares are sold will not be attributed back to Mr Smith but dividend received from the share will be attributed back to Mr Smith each year until the son sells the shares The capital gain ( $ 1 6 $ 1 0 $ 6 5 0 0 $ 3 , 0 0 0 ) when the shares are sold will not be attributed back to Mr Smith but dividend received from the shares will be attributed back to Mr Smith each year until the year in which the son turns 1 8 years of age The capital gain ( $ 1 6 $ 1 0 $ 6 5 0 0 $ 3 , 0 0 0 ) when the shares are sold will be attributed back to Mr Smith including the dividend each year received from the shares

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Question 4 2 pts Mr   Smith owns 5 0 0 IBM shares with an ACB of $ 7 a share  Mr   Smith wishes to gift to his son who is 1 5 years old on January 1 s t , 2 0 2 3   The FMV at the time was $ 1 0 a share  The shares paid a dividend in each year of $ 1 , 0 0 0   Five years later the son sold the shares on the open market for $ 1 6 a share  What are the tax consequences  The capital gain of ( $ 1 6   $ 7   $ 9 5 0 0   $ 4 , 5 0 0 ) when the shares are sold will not be attributed back to M r   Smith but dividend received from the share each year will be attributed back to Mr   Smith until the year in which the son turns 1 8 years of age The capital gain ( $ 1 6   $ 1 0   $ 6 5 0 0   $ 3 , 0 0 0 ) when the shares are sold will not be attributed back to Mr   Smith but dividend received from the share will be attributed back to Mr   Smith each year until the son sells the shares The capital gain ( $ 1 6   $ 1 0   $ 6 5 0 0   $ 3 , 0 0 0 ) when the shares are sold will not be attributed back to Mr   Smith but dividend received from the shares will be attributed back to Mr   Smith each year until the year in which the son turns 1 8 years of age The capital gain ( $ 1 6   $ 1 0   $ 6 5 0 0   $ 3 , 0 0 0 ) when the shares are sold will be attributed back to Mr   Smith including the dividend each year received from the shares

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Question 4 2 pts Mr . Smith owns 5 0 0 IBM shares with an ACB of $ 7 a share. Mr . Smith wishes

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