Randall and Beth have been married for $22$ years. They have two children who are both independent and out of the house.

Last year, the couple sold their business Chapstick Inc. to a multinational company. They feel they have more than they

require in term of assets and cash flow and have been giving consideration to making donations to their favorite charity; an

organization called Paws and Claws that finds homes for dogs and exotic parrots.

They were doing some research and came across an article in the Globe & Mail that shed some light on ways how charitable

bequests can be made through insurance policies. The couple always had a risk management plan in place but after the sale

of the business they are considering using their life insurance policies to plan a charitable gift. They are somewhat confused

however as there are different implications to making such bequests and would like to speak to you in order to get some

additional information. Below is a list of the insurance policies that the couple own:$\backslash$table$[[$Policy Owner,Policy Type,Face Value,$CSV($$$),$Life Insured,Beneficiary,$\backslash$table$[[$Annual$],[$Premium$]]],[$Randall$,10-$year term,$250,000,$NA$,$Beth,Son,$1,500],[$Randall$,$Universal Life,$550,000,88,500,$Randall,Son,$2,900],[$Beth$,5-$year term,$300,000,$NA$,$Beth,Estate,$1,200],[$Beth$,$Whole Life,$175,000,42,000,$Beth,Daughter,$1,800],[$Beth$,$Universal Life,$220,000,35,500,$Randall,$\backslash$table$[[$Genevieve$],[($Friend$)]],2,200]]$

Beth's Whole Life Insurance has an outstanding policy loan totaling $$11,000,$ which she intends to pay back, but she just has not had the time. The couple has come to you to discuss how these donations can become part of their Estate Plan. ques:If Randall and Beth decided to complete an absolute assignment of both their term policies and Beth$$s

universal life policy as well as any applicable CSV$$s but continue to pay the premiums indefinitely for all

the policies, calculate their eligible donation amount for the year. ques: Based on your answer in question #$2,$ calculate the donation tax credit assuming the couple claims the

donations individually $-$ income threshold for the year is $$202,800.$