1. Interest income, dividend income, and capital gains income
   1. The textbook refers to interest income being taxed as ordinary income. Explain what is meant by ordinary income and what this means for tax purposes. (1 mark)
   2. Explain why dividend income may have a preferred tax treatment. (1 mark)

Explain the difference between a capital gain and a taxable capital gain by defining the percentage of capital gains (often referred to as the inclusion rate) an investor is taxed on. (1 mark)