1. An individual sold two lots of land, each with a fair market value of $30,000 and an original cost of $25,000. One lot sold was sold to a related corporation for $40,000 and the other lot sold to the spouse for $15,000. No tax election was filed for either sale. What amount would the individual include in determining their net income?

a) $0

b) $2,500

c) $5,000

d) $7,500

2. In 2020, an individual realized a $900,000 capital gain from the sale of qualified small business corporation shares (QSBC). The individual had a cumulative net investment loss (CNIL) balance of $40,000 at the end of 2020. A capital gains deduction (CGD) of $50,000 was claimed in 2018 against a $50,000 taxable capital gain from QSBC shares. What is the maximum CGD in 2020?

a) $391,692

b) $410,000

c) $441,692

d) $450,000

3. In most cases, what would be the tax treatment of dividends received by one Canadian corporation from another Canadian corporation?

a) Added to net income.

b) Added to net income and then subtracted when calculating taxable income.

c) Added to net income and then subtracted when calculating taxable income, so long as the receiving corporation has at least a 10% voting equity investment in the corporation paying the dividend.

d) Grossed-up by 15% or 38%, depending on the tax rate paid by the paying corporation, and added to net income.