Question #$1(17$ marks$)$

Sandy and Dana want to make a charitable gift to Ability Unlimited as they truly value the support the organization provides to Kashu and others in his similar situation. They are considering how they might use the vacant land that they currently hold in joint title to make a donation to Ability Unlimited in the current year.

Part A

Undertake an analysis of the following two options:

$$ Selling the land and donating the proceeds to the charity

$$ Donating the land to the charity

For each of the two options, show the full numerical analysis of the income tax consequences including the financial outcome to each of Dana and Sandy. Make a recommendation as to which option is most favourable financially including an explanation as to why. Show all calculations and use words to describe each step of your calculation. $(13$ marks$)$

Part B

Based on the facts of the case, analyze and recommend who should claim the charitable tax credit with detailed explanations supporting your recommendation compared to the alternative.

$(4$ marks$)$ to her poor money management skills. $(4$ marks$)$