A Parent Gifted Shares in a Public Corporation to Their

question 5

Multiple Choice

A parent gifted shares in a public corporation to their fifteen-year-old child.The ACB of the shares was $10,000.During the year, the child received $500 in dividends from the shares.The child then sold the shares for $12,000.Which of the following is true for the parent and child?

• A)The child will recognize the dividends and capital gain on their tax return.
• B)The parent will recognize the dividends on their tax return and the child will recognize the capital gain on their tax return.
• C)The parent will recognize the dividends and a capital gain on their tax return.
• D)The child will recognize the dividends on their tax return and the parent will recognize the capital gain on their tax return.

---

Definitions:

Subject

The entity being discussed or analyzed, often the topic of a sentence or the focus of a study.

Proposition

A proposed plan or action put forth for consideration or discussion.

Yoda

A fictional character from the "Star Wars" universe, known for his wisdom, mastery of the Force, and uniquely structured syntax.

Predicates

Functions or expressions in logic and mathematics that declare something about the subject, or in grammar, part of a sentence that tells something about the subject.