A. George will have to repay some of his OAS and CPP because of his high net income. 8. George will have to repay some of his OAS, because of his high net income. C. George will have to repay some of his CPP, because of his high net income D. George will not have to repay any of his OAS or CPP. 8) Lexton Ltd. is a small Canadian controlled private corporation that sells used boat parts over the Internet. Anne Kilan holds 100% of the shares of Lexton. Anne employs one part-time unrelated individual to handle updates to the website. During the year ended December 31, 2013, the income of the company was $30,000. This includes an accrual for salary to the employee of $5,000 and a bonus to Anne of $20,000. Both the salary and bonus accruals were paid on July 15, 2014. Which one of the following amounts represents the net income for tax purposes of Lexton for the year ended December 31, 2013? A. $30,000 B. $35,000 C $50,000 D. $55,000 9) Lisa Connors is not a resident of Canada. The country where she resides does not have a tax treaty with Canada. During 2013, Lisa had worldwide income of $160,000. Included in this figure is $30,000 of income earned in Canada from director's fees and $5,000 interest on Government of Canada savings bonds. Taxation 31 Page Which one of the following amounts is the amount of taxable income that Lisa must report on her Canadian personal income tax return for 2013? A. $5,000 8. $30,000 C. $35,000 D. $160,000 10) You are a Canada Revenue Agency payroll auditor, and you have come to suspect that Millennium Corporation (MC) has been paying one of its sales representatives, Ethan Bryce, as a contractor instead of as an employee. Ethan has been working 35 hours a week for MC for the past three years. He is provided with an office and administrative support on MC's premises and spends about 60% of his time visiting clients (using his own vehicle). Which of the following statements would most strongly support your assessment that Ethan should be considered an employee of MC? 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. B. 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- 31, 2013, after which