1. During the 2019 taxation year, a corporation sells a depreciable asset with a capital cost of $130,000 for $140,000. The asset had a net book value in the accounting records of $112,000. It was not the last asset in Class 8 and, prior to the disposition, the UCC balance for Class 8 was $96,000.

What is the amount of the adjustments that will be required in the conversion of the corporation's accounting Net Income to Net Income For Tax Purposes?

A. A deduction of $28,000, an addition of $5,000, and an addition of $34,000.

B. An addition of $5,000 and an addition of $34,000.

C. An addition of $44,000.

D. A deduction of $28,000 and an addition of $5,000.

2. During the 2019 taxation year, Brocko Ltd. has a business loss of $375,000, net taxable capital gains of $67,000, an Allowable Business Investment Loss of $23,000, and dividends from taxable Canadian corporations of $53,000. What is the amount of the non-capital loss for the year?

A. $384,000.

B. $398,000.

C. $322,000

D. $331,000.

4. Which of the following statements with respect to non-eligible dividends paid in 2019 is NOT correct?

A. Taxable dividends will be equal to 115 percent of dividends received.

B. Non-eligible dividends can be designated by both public corporations and CCPCs.

C. The combined federal/provincial dividend tax credit will always be equal to the gross-up

D. The federal dividend tax credit on such dividends is always equal to 9/13 of the gross-up

5. Which of the following is NOT a consequence of an acquisition of control?

A. A deemed year end.

B. The inability to deduct existing non-capital losses subsequent to the acquisition of

control.

C. The inability to deduct existing net capital losses subsequent to the acquisition of control.

D. A requirement to write down non-depreciable assets to their fair market value.