For several years, Ms. Tiffani Langston has owned 21,000 shares of Modal Inc., a Canadian public...

Transcribed Image Text:

For several years, Ms. Tiffani Langston has owned 21,000 shares of Modal Inc., a Canadian public company. These shares were acquired at a cost of $10 each. On January 12, 2022, Tiffani gifts 7,000 of these shares to her spouse Hugh Langston. She does not opt out of the spousal rollover of ITA 73(1). On the same date, Tiffani gifts the remaining 14,000 shares to her 9 year old son, Mark. On this date, the shares are trading at $11 each. On August 2, 2022, the shares pay an eligible dividend of $0.50 per share. On December 15, 2022, both her spouse, Hugh and her son, Mark sell all of their shares for $13 each. Required: (1) Determine the impact on the 2022 net income for Tiffani, her spouse Hugh, and her son Mark, as a result of the share transactions. (2) Assume Tiffani dies on November 11, 2022. Would your answer change as a result? For several years, Ms. Tiffani Langston has owned 21,000 shares of Modal Inc., a Canadian public company. These shares were acquired at a cost of $10 each. On January 12, 2022, Tiffani gifts 7,000 of these shares to her spouse Hugh Langston. She does not opt out of the spousal rollover of ITA 73(1). On the same date, Tiffani gifts the remaining 14,000 shares to her 9 year old son, Mark. On this date, the shares are trading at $11 each. On August 2, 2022, the shares pay an eligible dividend of $0.50 per share. On December 15, 2022, both her spouse, Hugh and her son, Mark sell all of their shares for $13 each. Required: (1) Determine the impact on the 2022 net income for Tiffani, her spouse Hugh, and her son Mark, as a result of the share transactions. (2) Assume Tiffani dies on November 11, 2022. Would your answer change as a result?

Answer rating: 100% (QA)

To determine the impact on the 2022 net income for Tiffani her spouse Hugh and her son Mark as a result of the share transactions we need to consider ... View the full answer