5 multiple choice Canadian Tax Questions: attached.

1. Jimin has income from the following sources: Employment income Taxable capital gain from sale of shares Allowable capital loss from sale of land Business loss carried forward from prior year Allowable business investment loss $ 50,000 3,000 (10,000) (2,500) (1,000) What is Jimin's net income for tax purposes in the year according to the aggregating formula in section 3? a) b) c) d) $39,500 $42,000 $46,500 $49,000 2. In the current taxation year, Steven has received the following benefits from his employer in addition to his salary of $60,000: Employer contribution to Registered Pension Plan on behalf of Steven A tennis-club membership that Steven only uses for games with his boss and customers Value of on-site child care provided by the employer to all employees at no cost An annual allowance for dry cleaning $ $ 5,000 3,000 $ 12,000 $ 750 How much will Steven have to report as his employment income for the current taxation year? a) b) c) d) 2/ $60,000 $60,750 $72,750 $80,750 3. Minjie's employer has provided her with a car that she is required to use in her employment. The car cost her employer $35,000 plus HST of 13%. She drives 25,000 km per year, of which 13,000 km are related to her employment. The automobile is available to her for 323 days during the year. What is the amount of the standby charge benefit to be included in Minjie's income for the year? a) b) c) d) $4,881 $5,039 $5,694 $8,041 4. Meredith borrows $50,000 on an interest-free basis from her employer on January 1, 2016. The prescribed rate is 3%, 2%, 3% and 3% for each of the four quarters of the year, respectively. Meredith uses the money to purchase an investment on which she earns interest at 4.5%. What is the overall increase in her income from this investment for the 2016 taxation year? a) b) c) d) $ 875 $ 1,375 $ 1,500 $ 2,250 5. Muhammad has a job where he must travel frequently and he does this in his own vehicle. He is required to pay the operating costs of the vehicle, and does not receive an allowance from his employer. Sixty per cent of his driving is related to earning employment income. He also has a few other expenses related to his job, as follows: Union dues Registered Pension Plan contributions (employee portion) CCA on his vehicle Interest expense on financing to purchase vehicle Operating costs of vehicle $ 850 $ 2,500 $ 4,000 $ 3,900 $ 6,000 What is the total amount that Muhammad can deduct against his employment income? a) $8,160 b) $8,340 c) $11,510 d) $11,690 3/