Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hey guys. So I have the following questions and these are the correct answers. I was hoping one of you could go through with the

Hey guys. So I have the following questions and these are the correct answers. I was hoping one of you could go through with the calculations to show me WHY those are the correct answers.

Thank you

image text in transcribed B had earned income of $80,000 in 20X5 and $95,000 in 20X6. At the end of 20X5 her pension adjustment was $3,000 and her unused RRSP deduction room was $1,000. What is B's maximum RRSP deduction in 20X6? 12,400 5% In the current year D withdrew $16,000 from his spousal RRSP and $4,000 from his TFSA. His wife had contributed $9,000 to the plan in each of the last six years but not in the current year. What amount is included in D's income for tax purposes in the current year? 8,000 5% In the current year E attended university full time and received a scholarship of $5,000 that covered most of her tuition. She also received support payments of $35,000 from her former spouse of which $14,000 was designated as support for her 5 year-old child. E withdrew $7,000 from her RRSP to help cover university expenses. Fortunately she won $2,000 from a lottery. What amount is added to E's income for tax purposes in the current year? 21,000 5% In the current year F moved from Edmonton to Calgary to work at his employer's head office. He incurred the following expenses related to the move: moving company to pack and move belongings $6,000, sales commission on sale of Edmonton home $22,000, utility and property tax costs of Edmonton home subsequent to moving but prior to sale $6,300, land transfer tax to purchase new home in Calgary $5,000, and legal fee to sell Edmonton home $4,000. F's salary in the current year was $140,000 of which $35,000 was earned while living in Calgary. What is the maximum amount that can be deducted from F's income for tax purposes in the current year? 35,000 5% H sold land to his sister for $280,000. The land is used for farming and at the time of the sale had a market value of $300,000. Two years after the sale the sister sold the land for $400,000. What amount is included in the sister's net income for tax purposes from the sale of the land? 60,000 5% In the current year K gifted shares of a public corporation to his wife. The shares, that originally cost $12,000, had a value of $16,000 at the time of the gift. During the year, K's wife received a dividend of $400 from the shares. What amount, if any, is included in K's net income for tax purposes in the current year? 552 5% M incorporated a business and allocated some of the shares to her 10 year-old child. The child paid for the shares with funds received from a grandparent's estate. During the current year the child received dividends of $5,000 from the corporation but has no other income. These dividends are taxable at the highest marginal tax rate. Is this statement true or false? true In the year of his death, J owned a rental property - land (FMV $200,000; cost $120,000), building (FMV $300,000; cost $250,000; UCC $190,000). His will bequeathed the property to his daughter. What amount is added to J's taxable income in the year of death? 125,000 5% In the year of her death, P owned a rental property - land (FMV $300,000; cost $230,000), building (FMV $380,000; cost $310,000; UCC $220,000). Her will bequeathed the property to her husband. What amount is added to P's taxable income in the year of death? 0 5%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

11th Edition

0538480920, 9780538480925

More Books

Students also viewed these Accounting questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago