Canadian Tax Principles, George brown college

QUESTION ONE

Determine the amount of interest to be included in income in Years 1, 2, and 3 for each of the following situation. Income tax reference: ITA 12(1)(c), 12(3), (4), (11). Debra purchased a $10,000 bond on its issue date, November 1, Year 1.The bond pays interest at 6%, compounded annually. Debra will receive the interest when the bond matures on October 31, Year 3.

QUESTION TWO Anne received the following dividend income during the current year: $1,000 of eligible dividends from taxable Canadian corporations $1,000 of non-eligible dividends from taxable Canadian corporations $1,000 of foreign dividends. The foreign country withheld $150 in foreign tax and Anne received the net amount of $850. Determine the amount of dividend income to be included in Anne's property income for the current year. Income tax reference: ITA 12(1)(j), (k), 82(1).