QUESTION 1

This year,Lucy had a commercialrental property and reports the following, in order to calculate her rental income or rental loss this year.

1. Rental Revenue: $10,000
2. Property Tax Expense: $2,000
3. Insurance Expense: $3,000
4. MaintenanceExpense: $9,000
5. Maximum CCA: $5,000 (apply the maximum,if possible/allowed,per class review)

Lucy is required to report this amount as herRental Income/Loss,this year.

a. ($4,000)

b. $0

c. $10,000

e. ($9,000)

QUESTION 2

To calculate the annual Maximum RRSP Purchase for this year,Last Year'sBusiness Incomeand Rental Incomeiare included in calculating "EARNED INCOME"

a. True

b. False

QUESTION 3

Jerry provides you with his income tax information for this year:

1. Employment Income:$200,000
2. CPP Deduction from his Payroll T4 slip: $0
3. EI Deduction from his Payroll T4 slip: $700
4. Capital Gains: $20,000 (hint: calculate taxable capital gains)
5. Union Dues Deduction:$2,000
6. RPP Deduction:$10,000
7. Interest Income: $5,000
8. Employment Expense Deduction: $10,000
9. Non-Capital (Business Loss from 2018) Loss Carry Forward: $20,000
10. Net Capital (netted at 50%) Loss Carry Forward: $10,000

WhatwillJerry insert into hisLine 26000, Taxable Income, this year?

QUESTION 4

This year, Sandra moved from Toronto to Vancouver and earned $10,000 at her new employment in Vancouver this year:

Sandra paid the following for moving expenses this year:

• Movers,$3,000
• Mileage was zero (Her friendGeorge drove for FREE)
• Meals: Claimed three days of qualifying mealsand applied the simplified method which allowsfor$69 per day. Her actual meal costs were $200.

What is the maximum moving expense claim for Sandra this year? (rounded to the nearest dollar)

a. $3,000

b. $3,207

c. $0

d. $3,200

QUESTION 5

This year, Sheila Linda sells Shares of CBA for proceeds of $6,000.The original purchase cost was $4,000.Selling Commission was $500

What is Linda's Taxable CapitalGain for this transaction?

a. $1,000

b. $750

c. $1,500

d. $3,500

QUESTION 6

Fred's Pizza business provides you the followingAccountingGAAPfinancial information for this year's businessincometax return:

Income Statement:

1. Revenue: $100,000
2. Meals and Entertainment: $10,000
3. Supply Expenses: $2,000
4. Depreciation Expenses: $5,000

Assets

Furniture (Class 8, 20%); UCC was $10,000; Purchase this year was $10,000 anddisposed of furniture for proceeds of$10,000 and had an original cost of $5,000.

Building (Class 1, 4%); UCC was $100,000

Themaximum CCAfor furniture onlyfor this year is?

Ignore the Accelerated Investment Incentive.