1. Which of the following situations would be considered an involuntary disposition?

a) Martin was the sole owner of a condo, and bequeathed the condo to his son when he died

b) Janet decided to make her rental property into her permanent residence

c) The Williams family trust was deemed to dispose of its capital assets after 21 years

d) RTI Construction company had a tractor that was stolen and destroyed

2. On the first business day in January, Jacob gave his wife Anna $10,000. She then bought shares in a well-known technology company. If she sells the shares by mid-year for $12,500, what is the correct taxable consequence?

a) There will be no tax consequence from disposition.

b) Anna and Jacob will both have a taxable capital gain of $1,250.

c) Anna will have a taxable capital gain of $1,250.

d) Jacob will have a taxable capital gain of $1,250.

3. Grant is age 50 and makes a salary of $120,000 per year. He contributed $10,000 to his RRSP this year and purchased 1,000 shares of RTP Corp when the share price was $10. Throughout the year, Grant received a total of $340 in eligible dividends from RTP Corp, and subsequently sold the stock later that year when the share price was $11.30. Grant is in a 42% marginal tax rate, and gross-up for eligible dividends is 38% with a corresponding dividend tax credit (DTC) of 26%. Which of the statements regarding Grants situation is correct?

a) Grant has a taxable capital gain of $565 on the sale of the RTP shares

b) Grants total tax owing on the RTP capital gain and dividend is $312.38

c) Grant can reduce his net income to $110,000 by claiming the RRSP deduction

d) Grant must include $469.20 in his income in relation to the RTP dividend

4. Under Canadian tax law, a person who visits Canada for 183 or more days during the year is:

a) Deemed to be a Canadian resident.

b) Asked to select their tax status in Canada.

c) Is considered to be a part-year resident for tax purposes.

d) A factual resident of Canada.