XYZ Limited, a CCPC owned solely by Mr. A, redeemed all of the special class B shares owned by Mr. A on March 1, 2019. The pertinent details are as follows:

Redemption proceeds-$100,000

Total PUC ofshares-1,000

Total ACB ofshares-10

The shares are not qualifying small business corporation shares.

Required:

Insert your answers to the following questions in the space provided below:

(you may insert your calculations for possible part marks)

1.The deemed dividend arising on the share redemption is

2.The taxable capital gain (allowable capital loss) arising

on the share redemption is $