In early March, you were preparing your client list with respect to the personal tax return preparation

Question:

In early March, you were preparing your client list with respect to the personal tax return preparation season. When you came across Mr. Ricky's name you realized that Mrs. Ricky had called you regarding her husband's death. Mr. Ricky had passed away March 1, 2012, at age 62.
Mr. Ricky owned and operated a Canadian-controlled private corporation, Shining Ltd., involved in reconditioning cars. Mr. Ricky's 100 shares had an adjusted cost base and paid-up capital of $55,000. The fair market value of the shares at the date of death was $750,000. Seventy-five per cent of the shares were left to his wife and the rest of the shares were left to his 25-year-old son.
Mr. Ricky earned $15,000 per month in salary. A non-periodic bonus of $35,000 had been declared on February 15, 2012, but had not yet been paid at the time of his death. His accumulated vacation pay of $10,000 and his February salary was due on the last day of the month, but was paid on March 10, 2012.
In addition to his shares, Mr. Ricky owned bonds which earned $5,500 of interest income in 2011 and accrued $917 of interest in 2012 to the date of his death. He owned another bond on which there was $500 in uncashed bond interest due on January 4, 2012, the anniversary date of that bond. Further, Mr. Ricky had owned two rental properties. Net rental income after capital cost allowance from January 1, 2011 to December 31, 2011 was $45,000 and net rental income before capital allowance was $4,000 for each of the months of January and February 2012.
Other Information:
(1) All assets of Shining Ltd. have been used in the active business of the corporation.
(2) The shares of Shining Ltd. have been owned by Mr. Ricky since 1995.
(3) Mr. Ricky had earned income in 2010 and 2011 of $95,000. He contributed to his RRSP the maximum amount allowed as a deduction in 2011. His RRSP was worth $295,000 at the time of his death. Mrs. Ricky is the designated beneficiary of his RRSP.
(4) Mr. Ricky had a savings/chequing account which earned $2,500 interest in 2011 and $150 during January and February 2012.
(5) Mr. Ricky had utilized $350,000 of his capital gains exemption.
(6) All of Mr. Ricky's other assets have been left to his wife, except for the two rental properties which are bequeathed to his 20-year-old daughter.
(7) The rental properties had a fair market value of $100,000 each. Both properties had the following details:

REQUIRED
Prepare a letter, in draft form for partner review, to Mrs. Ricky explaining the tax implications and the filing requirements in respect of Mr. Ricky's death. Calculate taxable income for 2012.