Mark Is the Only Shareholder of Sico Ltd

Mark is the only shareholder of Sico Ltd., a Canadian controlled private corporation.The CCPC has no balance in its GRIP account.In 2011, Sico paid a dividend in kind by distrib- uting securities with fair market value of $72,000 and an adjusted cost base of $56,000.Which of the following statements properly reflects the tax consequences of this transac- tion?

A) Sico has Taxable Income of $8,000 and Mark has Taxable Income of $72,000.
B) Sico has Taxable Income of $8,000 and Mark has Taxable Income $90,000.
C) Sico has Taxable Income of nil and Mark has Taxable Income of $72,000.
D) Sico has Taxable Income of $16,000 and Mark has Taxable Income of $90,000.
Deemed Dividends