1A) Ms. Wong owned two homes from 2016 to 2018. She had purchased Home A in 2011 for $260,000. In 2016, she purchased Home B for $360,000, with the intention of selling Home A immediately. Due to market conditions, mortgage rates, and the asking price, she was unable to sell Home A until 2018. The proceeds received on the sale of Home A were $310,000. In 2019, she was transferred to a different city and sold Home B. She designated 2016 and 2017 to Home A when it was sold. The proceeds received on the sale of Home B were $400,000. What is her taxable capital gain on Home B?

Question 1 options:

a)

Nil

b)

$2,500

c)

$5,000

d)

$10,000

e)

$20,000

1B) Which of the following statements regarding farming income is correct?

Question 3 options:

a)	A full-time lawyer recognized a $11,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $7,000.

b)	A full-time lawyer has income from his part-time farming activities. His farming income must be calculated on an accrual basis.

c)	A full-time lawyer recognized a $11,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $2,500.

d)	A full-time lawyer has income from his part-time farming activities. His farming income must be calculated on a cash basis.