1. George and Linda are common law partners. George has an income of $35,000 while Lindas income is $150,000. In her non-registered portfolio, Linda had a bond fund with an adjusted cost base (ACB) of $13,000. She gifted the fund to George when the fair market value of the fund was $24,000. This year, George received a total of $300 income from the fund. Today he sold the fund at the current fair market value (FMV) of $25,000. Which of the following is a result of these transactions?

a) Linda must pay taxes own on an $11,000 capital gain when she transferred the fund to George

b) Linda must declare $300 income received from the fund

c) George must elect to use the spousal rollover provision upon receipt of the shares from Linda

d) George must declare $1,000 capital gain when he sells the fund

2. Which of the following individuals income indicated below is tax-free?

a) Jason, age 18, who has received a $2,000 secondary school scholarship.

b) Amanda, age 17, who is in high school & works part-time at the local grocery store 8 hours per week.

c) Chris, age 24, who received a post-doctoral fellowship for $5,000.

3. Emily moved to Canada from another country on September 1st this year. Emily is a permanent resident and works full-time at a local hospital. As of which date will Emily be subject to Canadian tax on her worldwide income?

a) 83 days after the date she arrived in Canada

b) Emily can select a date that works for her by filing an election.

c) September 1st this year

d) January 1st next year

4. Hannah was injured in a car accident, and was awarded a settlement of $50,000. She invested the $50,000 settlement in her non-registered investment account and purchased a Canadian bond mutual fund. Hanna earned $750 in income from the fund, which she then sold for $51,000. Which statements properly describe the tax consequences to Hanna?

i) The $50,000 settlement is included in Hannas income in the year received

ii) The $50,000 settlement is paid tax-free to Hannah

iii) The $750 income from the bond fund is tax-free

iv) The $1,000 gain from the bond fund is taxable as a capital gain

a) i) and iii)

b) i) and iv)

c) ii) and iii)

d) ii) and iv)