Can you Please explain me these Multiple Choice? Thanks!

1) With respect to Tax Free Savings Accounts (TFSAs), which of the following statements isNOTcorrect?

1. Contributions to the accounts are not deductible.
2. Contributions to the accounts can be returned tax free at any time.
3. Earnings on assets in the accounts accumulate tax free.
4. Withdrawals of accumulated account earnings will be subject to tax.

2) With respect to RRSP contributions, which of the following statements is correct?

1. Contributions made during the current year and within 30 days of the end of the current year, must be deducted in the current year.
2. Contributions in excess of available deduction room cannot be deducted in the current year or in any subsequent year.
3. There is no penalty for making contributions that are in excess of available deduction room.
4. Contributions made during the current year can be deducted in any subsequent year.

3) Which one of the following lists describes items that are all included in the determination of Earned Income for RRSP purposes?

1. Author's royalties, net rental income or losses, and spousal support received/paid.
2. Auto standby charge, salesperson's expenses, and resource royalties.
3. Business income or losses, CPP retirement benefits, and research grants.
4. Rental income or losses, salaries, and scholarships.

4) Of the following statements about tax credits, which one is correct?

1. They are deducted from total income and are effectively not subject to tax.
2. They reduce tax by the same amount regardless of a taxpayer's marginal tax rate.
3. They are deducted from Net Income For Tax Purposes and are effectively not subject to tax.
4. Their impact is greater for taxpayers with a higher marginal tax rate.

5) Which of the following situations willNOTresult in the attribution of income to the transferor?

1. The transfer of a capital property to a spouse for consideration equal to fair market value of the property.
2. The transfer of a capital property to a spouse in return for a non-interest bearing note.
3. The transfer of an unincorporated business to a spouse.
4. The transfer of a capital property to the 15 year old son of the transferor's sister.

6) Jake Baxter donated $100,000 in cash to a Canadian registered charity.His Net Income For Tax Purposes and Taxable Income for the year is $120,000.Calculate Jake's maximum federaltax credit for charitable gifts.

1. $13,500.
2. $15,000.
3. $26,072.
4. $28,972.

7) Martin has a marginal tax rate of 46 percent.His wife, Carmen, has a marginal tax rate of 26 percent.In order to give his wife a supplemental source of income, he gave her a portion of his investment portfolio. Carmen's new investment portfolio generated interest income of $6,800 and taxable capital gains of $9,900.Which of the following statements isNOTcorrect?

1. Martin faces an additional tax liability of $3,128 as a result of Carmen's interest income.
2. Martin faces an additional tax liability of $4,554 as a result of Carmen's capital gains.
3. Carmen has no additional tax liability as a result of the investment portfolio.
4. Carmen faces a tax liability of $2,574 as a result of her capital gains.

8) Mr. Smith, the sole shareholder and employee of Smithco Ltd. since its incorporation in 1976, has decided to sell the corporation and retire in 2019.He has never belonged to a pension plan, and wishes to maximize his RRSP.Which one of the following amounts represents thelargestretiring allowance from Smithco that Mr. Smith can transfer to his RRSP in the year he retires?

1. $40,000.
2. $56,000.
3. $59,500.
4. $70,000.

9) Oscar is 73 years old.His 2019 net income for tax purposes from his RRIF and other investments is $120,000.He lives with his common-law partner, Felix who is 63 years old.Felix's only income for 2019 was investment income of $6,000.Oscar can claim all of the following federal tax credits except:

1. Basic personal tax credit.
2. Age tax credit.
3. Pension tax credit.
4. Spousal tax credit.

10) Pere gifted shares in a public corporation with a fair market value of $50,000 to his 12-year-old son, Fils. After Fils received $1,000 in dividends, he sold the shares for $53,000.What are the tax effects of the dividend and the sale?

1. Pere will claim the dividends on his tax return and Fils will claim the capital gain on his tax return.
2. Fils will claim the dividends and a capital gain on his tax return.
3. Pere will claim the dividends and a capital gain on his tax return.
4. Fils will claim the dividends on his tax return and Pere will claim the capital gain on his tax return.

11) Which of the following statements is correct?

1. Net income for tax purposes minus federal tax credits equals taxable income
2. Taxable income minus federal tax credits equals total federal tax
3. Total federal tax minus federal tax credits equals federal tax payable
4. Net income for tax purposes minus federal tax credits equals federal tax payable

12) There are a number of benefits and tax advantages associated with Registered Education Savings Plans (RESPs).Which of the following isNOTa benefit or advantage?

1. Contributions to the plans are deductible.
2. Earnings on assets within the plan are not subject to tax.
3. The government makes contributions in the form of Canada Education Savings Grants and Canada Learning Bonds.
4. Distributions from the plan may be received by some recipients without incurring any additional taxation.