You were preparing your client list with respect to the personal tax return preparation season in February. You were told by Mrs. J that her husband, Mr. J, had passed away April 15, 2020, at age 66. Mrs. J is the executrix and has no income.

Mr. J owned and operated a Canadian-controlled private corporation, ABC Ltd. Mr. J's200 shares had an adjusted cost base and paid-up capital of $95,000. The fair market value of the shares at the date of death was $200,000. These shares are qualifying small business corporation (QSBC) shares.

Mr. J earned $16,000 per month in salary, which was paid by direct deposit on the last day of the month. A non-periodic bonus of $50,000 had been declared on March 15, 2020 but had not yet been paid at the time of his death. CPP of $2,898 has been, or will be, withheld on this income. He is not eligible for EI.

In addition to his shares, Mr. J owned bonds with accrued interest of $1,900 in 2020 to the date of his death. Further, Mr. J had owned two rental properties. Net rental income before capital cost allowance was $4,000 for each month from January to April 2020, received on the last day of the month.

Other Information:

(1) Mr. J had earned income in 2019 of $95,000. He contributed to his RRSP the maximum amount allowed as a deduction on March 1, 2020. His RRSP was worth $295,000 at the time of his death. Mrs. J is the designated beneficiary of his RRSP.

(2) His 2019 personal tax return was prepared but not filed at the time of his death.

(3) Mr. J had not used any of his capital gains exemption.

(4) All of Mr. J's assets have been left to his wife, except for theunit #2 rental property that is bequeathed to his 20-year-old daughter.

(5) The rental properties had the following details:

The rental properties had the following details:

#1 Unit

Land

Fair market value $100,000

Capital cost 90,000

UCC Nil

Building

Fair market value $100,000

Capital cost 72,000

UCC 50,000

#2 Unit

Land

Fair market value $180,000

Capital cost $110,000

UCC Nil

Building

Fair market value $90,000

Capital cost 93,000

UCC 64,000

You are asked to use the above information to solve the following questions:

(1) identify the filing requirements for Mr. J;

(2) discuss the tax implications of deemed disposition of shares;

(3) explain the tax implications of deemed disposition of rental properties;

(4) prepare Mr. J's final return and Rights and Things returns (including federal and provincialtaxes) . Assume that Mr. J's basic personal credit base is $13,229.

(5) Show all calculations and explain any unused information in your calculation.