Bob has significant of taxable gain in 2021 that he is planning to include on his total income. He would like to sell his 20,000 shares of a public company that is currently at a loss. How much is the allowable capital loss if he purchased the 20,000 shares at $3 per share and wants to sell at $1 per share?

Question 2 options:

a)

$40,000

b)

$60,000

c)

$25,000

d)

$20,000

Question 3 (1 point)

The following relates to different types of registered plans:

1. Registered Retirement Income Fund
2. Tax-Free Savings Account
3. Registered Education Savings Plan
4. Registered Retirement Savings Plan

What plan permits the amount contributed to be deducted from the individual's total income in the year contribution is made or carry forward if unused?

Question 3 options:

a)	i, ii and iii

b)	ii, iii and iv

c)

iv only

d)	None of the above

Question 4 (1 point)

The basis for the calculation of earned income used in the computation of child care expenses are exactly the same basis for the earned income used in the computation of RRSP contribution limit.

Question 4 options:

	True
	False

Question 5 (1 point)

Mr. X has a house in the city that qualifies as his principal residence from 2010 to 2020. If Mr. X bought the house for $310,000 in 2010 and sold it for $400,000 in 2020. What is the calculated capital gain that Mr. X will include on his tax return in 2020 after making an election to designate the house as principal residence for the full 11 years?

Question 5 options:

a)

$22,500

b)

$90,000

c)

$Nil

d)

$45,000