taxation question

Required: Prepare a brief report that answers Meister's questions. PROBLEM FOUR In 20x0, Kiranjit Dhillon acquired 1.000 shares of Pluton Ltd. (a Canadian public con poration) at a cost of $21,000 plus a brokerage commission of $600. During 2040 she received cash dividends of $1.200. In 20X1. Pluton failed to pay the cash di dend owing to a cash-flow shortage; instead, it issued a stock dividend, whereby Dhillon received an additional 100 shares. At the time of the stock dividend the share value was $18 per share. On December 15, 20x1, with the company's financial position continuing to decline Dhillon sold all of her shares of Pluton for $15,000. She felt relieved when the share values declined further over the next two weeks. She incurred brokerage fees of $300 on the sale. Early in the new year, Pluton apparently solved its financial crisis by selling an unprot- itable subsidiary. Dhillon's broker recommended that she again invest in Pluton's shares. On January 11, 20X2, she purchased 1,000 shares at a cost of $12,000 plus brokerage fees of $200. In June 20x2, she gifted all of her shares in Pluton to her son, who was about to attend university. At that time, the shares were valued at $20,000