Solution for QID #40534: Katie has Canadian public company shares that are worth $50, | StudyHelpMe

Katie has Canadian public company shares that are worth $50,000 and pay a dividend of $2,500 each year. Her adjusted cost base on these shares is $35,000. She is already in the top tax bracket. She would like your advice on the following proposed transactions: Sell the shares to her husband (1) Sell the shares to him for cash of $50,000 (2) Sell the shares to him for a non-interest bearing note of $50,000 (3) Sell the shares to him for cash of $40,000. Sell the shares to her 25-year-old daughter (4) Sell the shares to her for cash of $50,000 (5) Sell the shares to her for a non-interest bearing note of $50,000 (6) Sell the shares to her for cash of $40,000.