Original and Complete Test Bank

Original and Complete Test Bank Introduc�on to Federal Income Taxa�on in Canada 43e (2022-2023) Nathalie Johnstone, Devan Mescall, Julie Robson (1 00% Original Test Bank, A+ Grade Verified)

Part 1: Multiple Choice Exam Questions (Answers at the

end) Page: 1-63

Part 2: Practice MCQ Questions by Chapter Including

the Dynamic Qu estions (Answers at the end) Page:

64-173

Part 3: Application Questions (Answers at the end of

each question) Page: 174-588

Download link for all Chapters/Questions Word/Excel Files at the end of this file.This is The Original Test Bank for 43 rd Edi�on from the Authors, all ot her Test Bank in the market are fake with old ques�ons. 1 / 4

Multiple Choice Exam Questions ( Q1 to Q139) Notes to instructors: These MCQs in this file are for exam purposes only. In order to retain their integrity and the ability to continue to use them as MCQ exam questions please do not post these or the solutions.There are practice MCQs provided that can be shared with the students should you desire to share some practice questions. They can be shares either through Moodle access or through the word documents provided on the instructor resource site.1) Tybee lives in Detroit, Michigan, USA. She commutes daily to Waterloo, Ontario, Canada, where she is employed by Ford Motor Company of Canada Limited. She works 9 am to 5 pm, Monday through Friday. Which one of the following best indicates Tybee’s residency status for Canadian income tax purposes for 2022?(a) A full-time resident (b) A part-year resident (c) A non-resident (d) A deemed resident (sojourner)

2) XYZ Inc. provides Samantha Davis with a company car. The car is leased for $800/month (including 13% HST and excluding insurance) and was made available to her for eight months. ABC pays all of the operating costs which amounted to $3,500 in 2022.Samantha drove 13,000 kilometres in 2022 of which 8,000 were for business. What is the minimum taxable benefit that Samantha must include on her 2022 personal tax return?(a) $2,850 rounded (b) $2,100 rounded (c) $6,117 rounded (d) $7,001 rounded

3) Which of the following is a taxable benefit?(a) A cash Christmas gift to an employee from the employer valued at $450.(b) Payment of the tuition for an employee completing a degree that will benefit the employer.(c) A 20% discount on the employer’s merchandise, available to all employees.(d) Subsidized meals offered to all employees of the company assuming the price is approximately equal to the cost.

4) Hulk Protein Supplements Ltd. is a CCPC. Bruce Lily, one of the employees, was granted a stock option on October 11, 2014 for 10,000 shares at $3 per share. Bruce exercised the stock option on September 30, 2017 when the market price was $6 per share. In February 2022, Bruce purchased a new home and sold the shares for $7 each. The fair market value on October 11, 2014 was $4. What is the effect of the above on Bruce’s income for tax purposes, assuming Bruce wants to minimize taxes?(a) $15,000 in 2017 (b) $20,000 in 2022 (c) $30,000 in 2017 (d) $35,000 in 2022

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5) Cherizia Gold presents the following information with her 2022 tax return:

Capital Gains:

Shares $1,600 Personal-use property 850 Listed personal property 900

Capital losses:

Shares $ 850 Personal-use property 1,100 Listed personal property 300 Listed personal property losses of prior years 105 Net capital losses from 2019 310 What is the minimum taxable capital gain (rounded to the nearest dollar) to be reported on Cherizia’s tax return?(a) $1,048 (b) $623 (c) $675 (d) $1,675

6) River Rose, a sole proprietor, purchased an unlimited life franchise (arm’s length transaction) at a cost of $100,000 during 2022. The maximum tax deduction related to

the franchise for the taxation year ending December 31, 2022 is:

(a) $2,500 (b) $3,750 (c) $7,500 (d) $10,000

7) On June 1, 2022 Beta Ltd, a CCPC, purchased a franchise for $115,000. The franchise has a limited life of 13 years. Assuming this is the only depreciable asset owned by Beta, which one of the following amounts represents the maximum amount of capital cost allowance that Beta can deduct for its year ended July 31, 2022? Ignore the leap year.(a) $115,000 (b) $13,269 (c) $2,218 (d) $7,780

8) Lambda sold a capital property on October 31, 2022 for $200,000 with a cash down payment of $15,000. The balance of $185,000 is payable on October 31, 2026. The adjusted cost base of the property was $115,000 and the selling costs were $7,000. Which one of the following amounts represents the minimum taxable capital gain (rounded to the nearest dollar) in 2022?(a) $39,000 (b) $5,850 (c) $7,800 (d) $15,600

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9) ScarpyLtd., a public company and a manufacturer with a December 31 year-end. On January 1, 2022, the undepreciated capital cost for Class 10.1 was $17,850. The Class 10.1 car was purchased in 2020 for $35,000. During 2022, it was sold for $21,000. A new automobile was purchased for $40,680, which included HST of $4,160. ABC Ltd. is registered to collect and remit HST. What is the maximum CCA allowed combined (rounded to the nearest dollar) for the two cars for 2022?(a) $17,289 (b) $17,978 (c) $19,967 (d) $17,798

10) Jonas Laliberte is a self-employed therapist. He meets with all of his clients in his 400 square foot home office. The entire house has a square footage of 2,400 square feet.

Greg incurred the following costs:

Utilities $1,600 House insurance 700 Business liability insurance 500 House maintenance 1,000 Mortgage interest 3,700 Property tax 1,100 Office supplies 500 What are the total expenses deductible from business income?(a) $1,000 (b) $1,350 (c) $1,517 (d) $2,350

11) K Corporation Inc., a public company, owns a restaurant business that it carries on in rented premises. The lease was signed January 1, 2021 and expires on December 31, 2026 (six years in total), and has two successive renewal options for two years each. K Corporation Inc. had an opening balance in 2022 in Class 13 of $26,000 that resulted from $32,000 of leasehold improvements made during the 2021 taxation year. K Corp Inc. made an additional $14,000 of leasehold improvements to the same premises during its 2022 taxation year-end which ends December 31, 2022. What is the maximum CCA that K Corp. Inc. can claim in 2022 for its Class 13 assets?(a) $3,000 (b) $7,000 (c) $6,000 (d) $9,000

12) During the 12-month period ended December 31, 2022 ABC Co., a CCPC, purchased a $40,000 (excluding tax of HST of 13%) passenger vehicle for use by its salesperson in conducting his employment. What is the maximum capital cost allowance that ABC Co.can claim for 2022, assuming that the company is a HST registrant (i.e., the company remits HST)?(a) $15,300 (b) $38,420 (c) $20,340 (d) $34,000

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