Steve Gifted Shares in a Public Corporation to His Fifteen-Year-Old

question 9

Multiple Choice

Steve gifted shares in a public corporation to his fifteen-year-old son,Simon.The ACB of the shares was $10,000.During the year,Simon received $500 in dividends from the shares.Simon then sold the shares for $12,000.Which of the following tax situations is true for Steve and Simon?

• A)Simon will have to claim the dividends and capital gain on his tax return.
• B)Steve will have to claim the dividends on his tax return and Simon will have to recognize the capital gain on his tax return.
• C)Steve will have to claim the dividends and a capital gain on his tax return.
• D)Simon will have to claim the dividends on his tax return and Steve will have to recognize the capital gain on his tax return.

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Definitions:

Systematic Extermination

The deliberate and methodical elimination of a particular group of people or animals, often carried out as a policy or strategy.

Genocide

The deliberate and systematic extermination of a national, racial, political, or cultural group.

Internal Colonialism

The economic and political subjugation of the minority group by the dominant group within a nation.

Minority Group

A category of people who experience relative disadvantage as compared to members of a dominant social group, often marked by racial, religious, ethnic, or gender distinctions.