8.

A Canadian resident in the 32% federal tax bracket receives $2,500 in dividends of a taxable Canadian corporation from his TFSA account. What is the amount of basic federal tax payable on this dividend income?

Select one:

a. $800

b. $684

c. $0

d. $400

9.

An investor purchases 100 convertible bonds for a total cost of $96,000. Each convertible bond is convertible into 50 common shares on or before the end of the following year. The common shares increase shortly thereafter to $25 per share and the company forces conversion. Calculate the adjusted cost base per common share.

Select one:

a. $96.00

b. $25.00

c. $19.20

d. $38.40