QUESTION 1

1. Which of the following statements is correct?

   	a.	Once a Canadian citizen has lived in Canada for any period of time, he/she has acquired a "taxable person" status and will always remain subject to Canadian income tax for all future years regardless of where that person lives.
   	b.	If and only if a person is a citizen of Canada in a given year will that person be subject to Canadian income tax for that year on all sources of income, regardless of where that income is earned.
   	c.	All of the choices shown.
   	d.	A person treated as a resident of the United States in a given year would never be subject to Canadian income tax for that year on any of that person's income, even if the income was earned in Canada during the year.
   	e.	If and only if a person is a resident of Canada at any time in a given year will that person be subject to Canadian income tax on all sources of income earned during that part of the year, regardless of where the income is earned.

5 points

QUESTION 2

1. A company has a January 1, 2020 balance for CCA class 50 of $79,000. During 2020, the last asset of Class 50 was sold for proceeds of $55,000. That asset had a capital cost of $175,000. No further assets were acquired before the end of the year, and no other assets of this class was owned by the company at the end of the year.

   Which of the following answers corresponds to the maximum deduction allowed in relation to the company's Class 50 assets for the year 2020?

   		$24,000
   		$13,200
   		$3,500
   		$22,550
   		$28,325
   		$43,450
   		$1,925
   		None of the choices shown.

5 points

QUESTION 3

1. On June 1, 2020, a company acquires a new residential complex building as an investment at a cost of $1,200,000. Of this total, an amount of $300,000 represents the value of the land. The building consists of multiple units that will be offered to the public to generate rental income from residential use. The building is allocated to a separate Class 1.

   Which of the following answers corresponds to the maximum CCA allowed for the company's Class 1 for the year 2020?

   		$54,000
   		$18,000
   		$36,000
   		None of the choices shown.
   		$81,000
   		$24,000
   		$72,000
   		$48,000