14- In order to meet the Qualified Small Business Corporation, a Corporation only needs to meet two test, the Small Business Corporation Test and the Holding Period Test.

True

False

15-

Mr. Jones, this year, gives you the following Tax information for this year:

Sale of public company shares : ($3,000) (Cost was 6,000 and proceeds of sale was: $3,000)

1. Sale of Furniture was $10,000 (Proceed was $20,000; Cost was $10,000)
2. QSBC Capital Gain of $100,000. A capital gains deduction was applied, but due to restrictions, Mr. Jones could only deduct 30% of the QSBC Taxable Capital Gain.
3. LPP Assets were sold for $4,000. The original Cost was $500
4. Rental Income was $100,000 this year.

This year, the minimum income reported in Section 3B, only, is?

17- A superficial loss is on a loss on a sale of XYZ shares and the same number of XYZ shares are repurchased within 90 days. and at the end of the 30 day period, their are still XYZ shares are still owned.

True

False

17- A Canadian resident individual received a stock dividend from a public corporation of one share. The dividend is a taxable dividend. The stock dividend resulted in an increase in the paid-up capital of $5 for each share issued but the fair market value of each share is $10. Which of the following statements is correct about the stock dividend received? (hint: For Personal Tax: Dividend Received must be grossed up)

		The cost of the stock is deemed to be $5 and the individuals net income increases by $5.52.
		The cost of the stock is deemed to be $5 and the individuals net income increases by $6.90
		The cost of the stock is deemed to be $4 and the individuals net income increases by $5.52.
		The cost of the stock is deemed to be $0 and the individuals net income increases by $6.90

18- This year, Phillip has the following related to his Capital Gains Transaction this year:

1. Qualified Taxable Capital Gain, this year: $210,000
2. Allowable capital loss on RBC Shares sold this year: ($10,000)
3. Last Year, he deducted an ABIL for ($20,000)
4. CNIL to date: ($160,000)

Phillip's maximum ANNUAL LIMIT only, for the Capital Gains Deduction is?