Assignment 1 Note: Prepare the answers to these assignment questions in Word and save them as one Word document on your hard drive. See the TX2 Assignment Submission/FAQ section for the recommended format and filename. When your file is complete and you are ready to submit it for marking, select your “TX2 Assignment Submission” section under the “My CGA” tab. Question 1 (20 marks) Important: Multiple-choice questions are to be completed within the Online Learning Environment in your TX2 Assignment Submission section. This portion of the assignment will be automatically graded. Do not include your answers in your Word document as they will not be graded. Multiple choice (2 marks each) Marc is the son-in-law of Bernard. Bernard owns all the issued shares of Mammoth Inc., an import company whose taxation year ends December 31. In September 2011, Mammoth Inc. granted Marc a $10,000 loan, bearing interest at the market rate in effect at that time, so that he could purchase a snowmobile. Assuming that the loan is repaid in 2013 and Marc has always made his interest payments on time, what will be the tax consequences of this loan? a. 1. None. 2. Under section 80.4, Marc must include a taxable benefit in his income each year. 3. Bernard must include the amount of the loan in his 2011 income. 4. Marc must include the amount of the loan in his 2011 income. Sophie-Anne wants to acquire a 20% interest in Bigprofit Inc. She must pay $250,000 to the corporation, which will issue her 10,000 voting and participating shares of the corporation, representing 20% of the voting and participating shares of the corporation after the issue. Why would Sophie-Anne want shares of a separate class from that of the current shareholders, who had subscribed their shares for $10 each? b. 1. She wants the PUC of her shares to be $250,000. She does not want to dilute the ACB of her shares with that of the current shareholders. 2. 3. She wants to avoid having a taxable benefit conferred on her. She…