Sandra Peterson Has Asked Your Advice on Whether She Should

Sandra Peterson has asked your advice on whether she should transfer a group of investments to a new corporation that can be established to hold them. The corporation will be a Canadian controlled private corporation and she anticipates that, during 2020, the market value of these investments will increase by $142,000. No other income will be generated by the investments. Sandra will sell these investments by the end of the year in order to purchase a condo. None of these investments are eligible for the lifetime capital gains deduction.
The corporation will be subject to a provincial tax rate of 3 percent on income eligible for the small business deduction and 16 percent on other income. Sandra has employment income in excess of $250,000 and, given this, any additional income will be taxed at a provincial tax rate of 18 percent. The provincial dividend tax credit is equal to 4/13 of the dividend gross up for non-eligible dividends. Provide the requested advice, including an explanation of your conclusions.