7. The special rules for a disposition of property that includes land and buildings should be applied when:

a) There is a capital gain on the land and a capital loss on the building b) There is a capital gain on the building and a capital loss on the land c) There is a capital gain on the land and a terminal loss on the building d) There is a capital gain on the building and a terminal loss on the land

8. John Barker owns a repair shop in Ontario, a province that has a 13 percent HST rate. He has asked you to calculate the HST payable or refund for the first reporting period. Given the following information, what should the repair shops HST payable or refund be? Amount Before HST Sales $150,000 Equipment purchased 96,000 Supplies purchased 83,000 Wages paid 19,000 Rent paid 17,000

a) A refund of $8,450 b) A payment of $6,500 c) A refund of $3,770 d) A refund of $5,980

9. Mr. Germotte has two offers to purchase his solely owned corporation, one for the assets, one for the shares. In considering the asset offer, which of the following statements is correct?

a) The sale of assets will avoid having to take the corporation through a winding-up procedure. b) Mr. Germotte can take advantage of the lifetime capital gains deduction if the corporation is a qualified small business corporation. c) Mr. Germotte may be subject to taxes on business income and capital gains. d) The corporation may be subject to taxes on business income and capital gains