Your client owns a non-depreciable capital asset which was used in their unincorporated business. The asset originally cost $227,000, and it has a current FMV of $245,000. Your client sells the asset to their father.

Required:

In the following three scenarios, determine the amount of income to be recorded by your client as a result of the sale to their father, as well as the ACB of the asset to the father, and indicate if any double taxation will result on a subsequent sale by their father:

Scenario 1: Client gifts the asset to their father. Scenario 2: Client sells the asset to their father for $250,000. Scenario 3: Client sells the asset to their father for $101,000.