A. Ethan has been working 35 hours a week for MC for the past three years. B. Ethan has been giving most of his potential clients his business card from MC. C. Ethan has been provided with an office and administrative support on Me's premises. D. Ethan has been paid a fixed hourly amount for his services rendered. 11) Sophia White is an American citizen who, until recently, lived her whole life in Seattle, Washington. On May 17,2013 she received and signed an offer of employment with a Canadian employer, and immediately commenced employment by working remotely from her home in Seattle. On June 1,2013 she received landed immigrant status in Canada and obtained an Ontario driver's licence. On June 20, 2013 she moved into an apartment in Toronto along with her spouse and continued her work from her employer's Toronto office. Which of the following statements represents Sophia's Canadian tax status for the 2013 taxation year? A. She is a deemed resident of Canada for the entire year as she was in the country for more than 183 days in 2013. 8. She is a non-resident of Canada from January 1,2013 to May 16,2013, after which she is a resident of Canada. C. She is a non-resident of Canada from January 1,2013 to May 31, 2013, after which she is a resident of Canada. Taxation 41Page D. She is a non-resident of Canada from January 1, 2013 to June 19, 2013, after which she is a resident of Canada. 12) Omar is planning to open a new business and is unsure about which structure to utilize. His wife, Fatima, is willing to be involved in the business if necessary. Which of the following statements is correct regarding Omar's options? A. If Omar operates his business through a partnership, taxation of the business income may be deferred up for to 364 days. B. If Omar operates his business through a corporation, Fatima will be able to buy common shares at a nominal value at inception. C. If Omar operates his business through a corporation, he will be allowed to claim capital cost allowance that would not be available to him through other structures. D. If Omar operates his business through a sole proprietorship, there are no opportunities for income splitting with Fatima. 13) James is an employee of Ogden Corp. (Ogden) and earns an annual salary of $60,000, paid on the last day of each month (or if the day falls on a weekend, the preceding business day). In 2013, James will become entitled to a bonus of $4,600 from Ogden that will be paid on February 15, 2014. In addition to his employment income, James holds shares of a publicly- traded company which has declared a dividend to the shareholders of record on December 31, 2013, to be paid on January 15,2014. James' dividend is $1,200. Assuming no other income or deductions, what is James' taxable income for 2013? A. $60,000 B. $61,656 C. $64,600 D. $66,256 14) Kerry and Kim Gillard have been common-law partners since 2002, and live together in a condo in Toronto. They jointly own their condo as well as a cottage in the country that they visit together every second weekend each summer. The couple is planning to move to Alberta and they will sell both properties in 2014. The condo was acquired in 2004 for $350,000 and will sell for $550,000. The cottage was acquired in 2010 for $150,000 and will sell for $200,000. Which of the following represents the allowable elections that will minimize the taxes payable upon sale?