1. Which of the folowing groups of eities are all subeact to taxarion on income? A Indvidls, propeetorahips and corporations B. Proprietorsthips, corporaions and trusts C. Individuals, trusis and corporaions Individuas, partnerships and corporations 2 Which of the foilowing can be considered an advantage of an income tax system baned on progressive ratos? A A progressive rae system is simpler to administer A progressive rate system provides greater stabiity in the contexl of changing economic conditions C. A progressive system dsoourages tax evasion. D. A progressive sysem encourages greator eflort on the part of indviduals 3. Which of the following staboments is NOT corredt? A. Most major income tax changes are introduced in the annual Federal Budge B. A ederal clection can prevent passage of drafht legislation C Proposed changes in tax law are usualy introduced to pariament in the form of a Nohce of Ways and Means Mation . When there is a conflict between the Canadian Incomo Tax Act and an international agroament. the tems of the Canadian Iocome Tax Act preval 4. Tarya Turek has the folowing souroes of income and deductions Gross employmert income Net employment income Business oss Taxable capital gain Allowable capital loss $35,000 34,000 14,000 4,000 2,000 Whal is Tarya's Net Income for Tax Purposes? A. $23,000 B. 522,000 C $38.000 D. $24,000 5. Which of the following amounts is NOT deducted in corwering Net Income for Tax Purpos86 to Taxable income? A Losses of other years B. The Ifetime capital gains deduction. C. An amount related to the exercise or sale of stock options. D. The excess of alowable capital losses over taxabla capital gains for the year 6. For the 20X5 taxation yo ar, John Bookman had a taxable tagttal gam ol sassonan anon business loss of $45,000, resulting in a Taxabie Incomve of e. Which of thve toowing statements is correct? A. John is not required to file a tax return for 20x5. B. John must file a tax return on or before Jure 15, 20x6. C. John must file a tax return on or before December 31, 20x8. D. John must file a tax return on or before April 30, 20X6