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

6 points

QUESTION 4

1. A company has a January 1, 2020 balance for CCA class 53 of $1,546,000. During 2020, the company acquired additional Class 53 assets for a total cost of $750,000. Also, one of the several Class 53 assets was sold during the year for proceeds of $75,000. It had a cost of $160,000.

   Which of the following answers corresponds to the maximum CCA allowed for the company's Class 53 for the year 2020?

   		$1,279,250
   		$1,438,000
   		$773,000
   		None of the choices shown.
   		$1,523,000
   		$1,448,000
   		$1,485,500
   		$1,298,000

7 points

QUESTION 5

1. Vanessa moves to Germany and terminates all her ties to Canada on July 15 of the current year. She is 35 and has lived in Canada all of her life prior to July 15. Which one of the following best indicates Vanessas Canadian residency status for the current year?

   	a.	A full-time resident
   	b.	A non-resident
   	c.	A part-year resident
   	d.	A deemed resident (sojourner)

4 points

QUESTION 6

1. Ms. High is an employee that is provided with an automobile that her employer bought at a cost of $105,000 including all taxes. The total operating costs of the car were $0.60/km for the year and they were all paid by the employer. The car was available to Ms. High the entire year. Ms. High drove the car a total of 40,000kms during the year, all but 10,500kms were employment related (fully documented). Ms. High reimbursed her employer $1,000 for her personal use of the automobile for the year.

   Which of the following answers corresponds to the automobile taxable benefit to be included in Ms. High's Net Employment Income for the year?

   		None of the choices shown .
   		$18,841
   		$13,913
   		$0
   		$16,167
   		$8,555
   		$32,460
   		$15,167

13 points

QUESTION 7

1. Alex has been employed by a Canadian private corporation for many years now. To recognise his contribution to the company, on January 1, 2017, Alex was granted the option to buy 1,000 shares of his employer's common shares at a price of $25.00 per share. At that time, the shares were worth $27.00 each. On June 1, 2018, Alex exercised his option and acquired 1,000 shares at $25 each. At that time, the shares were worth $42.00 each. Alex sold all the 1,000 shares on May 1, 2020 for proceeds of $50.00 per share.

   Which of the following answers corresponds to the stock option benefit to be included in Alex's Net Employment Income for the year 2020?

   		$8,500
   		$25,000
   		$21,000
   		$17,000
   		$4,000
   		$12,500
   		None of the choices shown.
   		$23,000

9 points

QUESTION 8

1. A company owns several office buildings belonging to CCA class 3. The January 1, 2020 UCC balance of CCA class 3 was $860,000. During 2020, one of the buildings in this class was sold for proceeds of $1,255,000. The building had a capital cost of $925,000.

   Which of the following answers corresponds to the maximum CCA allowed for the company's Class 3 for the year 2020?

   		$0
   		$67,750
   		$43,000
   		$19,875
   		$19,750
   		$2,600
   		$3,250
   		None of the choices shown.