Tanni Tamaki and Gerald Malada are a married couple and they equally own and operate Red Bird Inc.Tanni's sibling Marti is starting a new company, Flightseekers Co., and has asked Tanni to be a 35% common shareholder.Marti will own 45% of the shares, and the remainder will be owned equally by Marti and Tanni's two parents.
Required:
Determine if the two corporations are associated.If they are, identify the section of the Income Tax Act that applies.

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The Answer of Tanni Tamaki and Gerald Malada are a married couple and they equally own and operate Red Bird Inc.Tanni's sibling Marti is starting a new company, Flightseekers Co., and has asked Tanni to be a 35% common shareholder.Marti will own 45% of the shares, and the remainder will be owned equally by Marti and Tanni's two parents.
Required:
Determine if the two corporations are associated.If they are, identify the section of the Income Tax Act that applies.

Tanni Tamaki and Gerald Malada Are a Married Couple and They