11 12 Which of the following items is NOT a deduction in the determination of Taxable income? A. Lifetime capital gains deduction. B. One-half the employment income inclusion resulting from the exercise of stock options. C. Eligible medical expenses. D. Loss carry overs from a previous taxation year. With respect to tax payable, which of the following statements is NOT correct? A. A resident of Canada who does not live in a province will be assessed a surtax on federal Tax Payable. B. An individual will be assessed provincial income taxes by the province in which he resides on the last day of the taxation year. C. In general, provincial Tax Payable is calculated using the same Taxable Income that is used to calculate federal Tax Payable. D. Provincial taxes are calculated as a percentage of federal Tax Payable. 7 8 Which of the following would not be an advantage of being employed as opposed to being an independent contractor? A. The ability to receive more fringe benefits. B. The ability to make lower CPP payments. C. The ability to pay income tax in quarterly instalments. D. Greater job security. 0. Which of the following items would be considered a taxable benefit to an employee? A. Discounts on merchandise sold by the employer. B. A $450 gift certificate that can be used at a local clothing store. C. Premiums on private health insurance plans. D. The cost of counseling services related to mental health. 1. During 2020 , Ms. Green's employer provides her with an automobile for 11 months of the year. It cost $58,760, including applicable HST. She drives it a total of 62,000 kilometers. Of the total kilometers driven, 16,000 relate to personal use of the automobile. The employer pays all maintenance costs which total $9,200 for the year. What is the minimum taxable benefit for the use of the automobile that will be assessed to Ms. Green for 2020? A. $17,407 B. $16,920 C. $15,760 D. $16,785 9 10 2. Which of the following allowances would have to be included in an employee's Net Income For Tax Purposes? A. An allowance of $70 per day for food while traveling on the employer's behalf. B. An allowance of $200 per day for lodging while traveling on the employer's behalf. C. An allowance of $600 per month to compensate the employee for using his personal automobile for employment related activities. D. An allowance of $0.40 per kilometer to compensate an employee for using his personal automobile for employment related activities