Exercise #$1[25$ points$]$ Saul and Seth Carmichael are brothers and professional accountants. While both brothers had worked in large firms for several years, on January $1,2023,$ they decided to leave their former employers and form a partnership. At this time, they each made a capital contribution of $$280,000$ in cash. Their partnership agreement calls for them to share all profits$/$losses$,$ capital gains, capital losses and any other amounts that would qualify for tax credits equally. During the partnership fiscal period ending December $31,2023,$ the partnership had income of $$290,000,$ all of which was business income. The partnership made no charitable donations in $2023.$ In $2023$ Saul withdrew $$50,000$ and Seth withdrew $$80,000.$ The partnership's $2024$ Income Statement, prepared in accordance with ASPE, is as follows: Income Statement Saul And Seth Carmichael Partnership Fiscal Period Ending December $31,2024$ Note $1-$ Maximum $2024$ CCA is $$19,000.$ Note $2-$ The gain resulted from the sale of temporary investments. The investments had an ACB of $$41,000$ and were sold for $$47,000.$Other Information $1.$ In $2024,$ Saul withdrew $$190,000$ while Seth withdrew $$175,000.$ In $2024,$ Seth's only income was from the partnership. Assume that other than credits related to partnership allocations, Seth's only tax credit is his BPA. On January $1,2025,$ Seth sells his interest in the partnership to an arm's length individual for $$450,000.$ Required: Calculate Seth's $2024$ federal income tax payable. In addition, determine the taxable capital gain or allowable capital loss that would result from Seth's sale of his partnership interest. Ignore all CPP implications. What would motivate Seth and Saul to create the partnership in $2023?$ What impact would the sale in $2025$ of Seth's partnership interest to an arm's length third party have on the original partnership? How might this impact Saul?