1. At its June 30, 2020 year-end, a company (Opco) accrued a bonus to its owner/manager of $200,000. Opco paid the amount at the rate of $10,000 per month. How much would be deductible by Opco for its 2020, 2021 and 2022 taxation year?

a. $200,000 for 2020 as Opco, like all businesses, reports income on an accrual basis.

b. $180,000 for 2021 and $20,000 for 2022.

c. $60,000 for 2020, $120,000 for 2021 and $20,000 for 2022.

d. $120,000 for 2021 and $80,000 for 2022.

2. An employee, working in Manitoba, drove an automobile 7,000 km for work and was paid a reasonable allowance. What would be the maximum allowance the employer could deduct in their 2021 taxation year?

a. $3,3710

b. $3,830

c. $4,010

d. $4,130

3. Kind Corporation pays its employees for using their own vehicles while conducting company business. It paid an employee $.58 per km and they drove 10,000 km in 2021. How much is actually deductible by the company in that year?

a. $5,800

b. $4,800

c. $2,950

d. $5,600