Question 1 (1 point) Ms. Wong owned two homes from 2016 to 2018. She had purchased Home A in 2011 for $260,000. In 2016, she purchased Home B for $360,000, with the intention of selling Home A immediately. Due to market conditions, mortgage rates, and the asking price, she was unable to sell Home A until 2018. The proceeds received on the sale of Home A were $310,000. In 2019, she was transferred to a different city and sold Home B. She designated 2016 and 2017 to Home A when it was sold. The proceeds received on the sale of Home B were $400.000. What is her taxable capital gain on Home B? a) Nil Ob) $2,500 c) $5,000 d) $10,000 e) $20,000 Question 2 (1 point) Jillian bought a mountain chalet in 2013 for $250,000 and sold it in 2018 for $280,000. She bought a lakeside cabin in 2014 for $300,000 and sold it in 2018 for $330,000. She lived full-time at the chalet in 2013 and spent an equal amount of time at the chalet and the cabin during the 5 years from 2014 to 2018. How should she allocate her principal residence gain reduction for the year 2014 to minimize her 2018 taxable capital gains? a) 2014 should be allocated to the cabin Ob) 2014 should be allocated to the chalet Oc) 2014 should be split between the cabin and the chalet d) 2014 cannot be allocated to either the cabin or the chalet Question 3 (1 point) Which of the following statements regarding farming income is correct? a) A full-time lawyer has income from his part-time farming activities. His farming income must be calculated on an accrual basis. Ob) A full-time lawyer has income from his part-time farming activities. His farming income must be calculated on a cash basis. OC) A full-time lawyer recognized a $11,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $7,000 d) A full-time lawyer recognized a $11,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $2,500