Question 1:

Jones works for the Bank of Montreal. The bank provides loans to its employees at an annual interest rate of 3%. On April 1 of the current year the bank provides Diego with an employee loan in the amount of $36,000 at the annual interest rate of 3%. The loan requires annual principal repayments of $3,000 on April 1 of each year. Diego makes the first annual repayment in the following year. Assume that Canada RevenueAgency's prescribed interest rates for the current year are asfollows:

Q1(Jan. 1 to Mar.31) = 5%

Q2(Apr. 1 to June30) = 6%

Q3(July 1 to Sept.30) = 5%

Q4(Oct. 1 to Dec.31) = 6%

Calculate the taxable benefit to be included in employment income for Diego Jones in the current year. Round your answer to the nearest dollar.

Question 2:

With respect to the medical expense tax credit, which of the following statements is correct?

-Teeth whitening for cosmetic reasons would be qualifying medical expense.

-There is no variation between provinces in the types of costs that qualify for the medical expense tax credit.

-Medical expenses can be claimed for any 24-month period.

-If the taxpayer has no dependents who are over 18 years of age or older, components D, E and F in the formula are not relevant.

Question 3:

Adam is self-employed. Hemightbe eligible for all of the following tax creditsexceptfor the:

-CPP tax credit

-EI tax credit

-Canada Employment tax credit

-All of the above