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During the year, Tom gifted to his 17 year old son, Brent, shares in Royal...

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Accounting

During the year, Tom gifted to his 17 year old son, Brent, shares in Royal Bank that he had originally bought for $1,000. At the time of the gift, the shares were worth $10,000. Brent received $500 in dividend income from the Royal Bank shares. Later in the year, Brent sold the shares for $11,000.

Explain the tax implications of the transactions. Who should report the dividend income and the capital gains on the two sales and the amounts?

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