Question 4 (attribution rule)

Martha purchased 10,000 common shares in 2010 of SENEDGE INC, a CCPC at $12 per share. Martha gifts her husband 5000 shares and her 14 year old daughter 5000 common shares in 2012, when the common share FMV was $13. Near the end of Dec 2015, SENEDGE INC gave out dividends $1 for each share. The husband and daughter both sell all their shares in 2016 at $16 Determine the taxable income to each individual for each case, write nil if zero

A) Common shares gifted

B) Dividends received 2015

C) Shares sold at 2016

A) Martha Husband Daug hter

B)

C)