1-What is my "earned income" (for purposes of calculating my RRSP deduction limit) if I have the following sources of income this year:

Employment income $174,300

Loss on rental property $6,250

Interest income $975

Dividend income $1,680

Capital gains $3,000

$173,705

$172,205

$186,205

$168,050

2-Alanna's employer provided her with a car from Jan. to Dec. 2019. She used this car, which cost her employer $25,000, for both work and personal use. Last year Alanna drove a total of 20,000 kms (12,000 of which were for personal use). What amount will Alanna include in her income as a taxable automobile benefit? (Note: the 2019 flat rate used to calculate operating cost is $0.28/km)

$3,360

$5,270

$6,000

$9,360

3-A new client, Martin, has come to you to talk about RRSPs. He has compiled a list of information that he thinks you may need:

2018 earned income = $120,800

2018 interest income = $800

2018 dividend income = $4,200

2018 pension adjustment = $1,300

Unused RRSP deduction room carried forward = $20,000

Martin mentions that when he retired recently his employer gave him the option to take a lump sum from the defined benefit pension plan. As a result, his employer calculated a Pension Adjustment Reversal (PAR) of $750.

From this information you determine that Martin's 2019 RRSP deduction limit is

$41,194

$42,094

$39,694

$40,594

4-Recently, you learned that one of your clients has died intestate. What does this mean?

the client died outside their country of citizenship

the client died without choosing a guardian for a minor child

the client died without a will

the client's estate at the time of death had fewer assets than debts

5-Your client's gross income is $50,000 per year, or $41,000 net income per year. Her mortgage costs (principal and interest) are $15,000 a year. She pays property taxes of $1,400/yr, heating costs of $600/yr, and $400/yr for internet, phone and TV. She has a car loan with payments of $1,500/yr. What is her Total Debt Service Ratio (TDSR)?

30%

37%

34%

45%

6-Your employer has very kindly offered to give you a loan of $5,000. You will be required to pay interest annually at 1%. The prescribed interest rate set by the Canada Revenue Agency is 3%. What amount will be included in your income as a result of this loan?

Nothing

$50

$150

$100

7-A client driven financial advisor

is motivated by gaining as many new clients as possible

will focus on selling products to clients

will focus on building a relationship with clients

will not use the 6 steps of the financial planning process

8-2019 TAXABLE INCOME

Federal tax rate

on the first $47,630 of taxable income

15%

on the next $47,629 of taxable income (on the portion of taxable income over $47,630 up to $95,259)

20.5%

on the next $52,408 of taxable income (on the portion of taxable income over $95,259 up to $147,667)

26%

on the next $62,704 of taxable income (on the portion of taxable income over $147,667 up to $210,371)

29%

on taxable income over $210,371

33%

The Federal Marginal Tax Rate for someone with $147,667 of taxable income is

29.0%

21.9%

26.0%

36.1%

9-Henry sold two different investments this year. The first, his shares in Google, were purchased back in 2013 for $1900 and sold this year for $8500. The second, his shares in Disney, were bought in in 2015 for $14,000 and sold this year for $12,700. Which of the following statements is correct with respect to these transactions?

Henry has a taxable capital gain of $6,600 on the Google shares and an allowable capital loss of $1,300 on the Disney shares. He will claim a net capital gain on his tax return of $5,300.

Henry has a capital gain of $6,600 on the Google shares and a capital loss of $1,300 on the Disney shares. He will claim only the capital gain of $6,600 on his tax return.

Henry has a taxable capital gain of $3,300 on the Google shares and an allowable capital loss of $650 on the Disney shares. He will claim a net taxable capital gain on his tax return of $2,650.

Henry has a capital gain of $3,300 on the Google shares and a capital loss of $650 on the Disney shares. He will claim the capital gain of $3,300 on his tax return. He can also carry the loss back three years or forward indefinitely.