are transferred at the UCC values.
3. As Spencer, and especially his family, have no interest in running a pig farm, he sells the
inherited property to his brother in March, as soon as he has title. His brother agrees to
purchase the assets for the fair market values determined by the executors, specifically
\$375,000 for the land, \$275,000 for the building, and \$110,000 for the equipment.
4. In memory of his father, Spencer donates \$8,400 on his father's birthday in 2020 to Hearts
On Noses - A Mini Pig Sanctuary. This registered charity helps preserve the lives of injured,
abused, abandoned, and neglected pot bellied pigs.
5. During 2020, Spencer makes a \$4,000 contribution to his Tax Free Savings Account and
\$5,000 to Suzanne's. He also makes a \$2,000 contribution (\$1,000 per child) to the family
Registered Education Savings Plan established for Charles and Charlene.
Required:
A. Determine Suzanne's federal Tax Payable and her CPP liability for 2020. In calculating
Suzanne's federal Tax Payable, assume that Spencer's Taxable Income exceeds \$200,000.
B. Determine Spencer's federal Tax Payable for 2020.
In determining these amounts, ignore GST, PST, and HST considerations.
