please select and write correct answers

1) Under which of the following conditions must you file a personal income tax return?

O a. You will receive an income tax refund.

b. You acquired capital property during the calendar year.

O c. You got married, separated, or divorced

during the calendar year.

O d. You have to contribute to the Canada

Pension Plan.

2) Fred's income this past year included salary of $70 000, $3000 in interest income, a $4000 capital gain from selling some stock and a $5000 inheritance. For tax purposes, what is his total income this year?

O a. $82 000

O b. $77 000

O c. $75 000

O d. $80 000

3) Inflation can cause our taxes to increase because of what is called "bracket creep"

O a. Sometimes false

O b. False

O c. True

O d. True or False

4) The

next dollar of income.

tax rate applies to the

Select one:

O a. marginal

O b. combined

O c. after

O d. relevant

5) This month was the dateline for depositing money into your RRSP account. You over contributed by $3,500 in your RRSP. What is the amount of penalty you may face from CRA for this over-contribution next month?

Select one:

O a. None of the above

O b. $20

O . $35

O d. $15

O e. $0

6) Which of the following is not typically a legitimate tax deduction in Canada?

O a. Mortgage interest on your home

O b. The cost of some investment advice

O c. RRSP contributions

O d. Union dues

7). A student can deduct the full amount of his/her tuition for income tax purposes.

Select one:

O a. True O b. False

8) Sara bought 500 shares in XYZ Company in 2014 and the adjusted cost base was $5,000. Now, it is 2016 and the she has transferred the shares to her husband Tom using adjusted cost base of the shares. Tom sold the shares in December of 2016 for $7,000. How much will be the taxable capital gain and who will pay tax on it?

Select one:

O a. $2000, Tom O b. $2000, Sara O c. $1000, Tom O d. $1000, Sara

9) Which of the following is an acceptable method of reducing your tax bill for the current year?

O a. Making large payments on your outstanding mortgage

O b. Deducting employment expenses you

weren't reimbursed for

O c. Increasing your contributions to your tax

free savings account

O d. Earning income outside of Canada

10) Which of the following is applicable when calculating tax credit?

Select one:

O a. Moving expense

O b. RRSP contribution

O c. Tuition fees paid

O d. Carrying charges

11) Which are the correct items used to reduce taxable income?

a. Tax credits

O b. Grossing up of eligible dividends

O c. Dividend credits

O d. Allowable deductions

12) Which of the following income is taxable income?

O a. Tips received

O b. Scholarship income

O c. Insurance benefits

O d. Inheritances