QUESTION 1

1. Which of the following statements iscorrect?
2. 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.
3. 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.
5. c.All of the choices shown.
6. 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.
7. 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.

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.
3. Which of the following answers corresponds to the maximum deduction allowed in relation to the company's Class 50 assets for the year 2020?
5. $24,000
6. $13,200
7. $3,500
8. $22,550
9. $28,325
10. $43,450
11. $1,925
12. None of the choices shown.

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 publicto generate rental income fromresidential use.The building is allocated to a separate Class 1.
3. Which of the following answers corresponds to the maximum CCA allowed for the company's Class 1 for the year 2020?
5. $54,000
6. $18,000
7. $36,000
8. None of the choices shown.
9. $81,000
10. $24,000
11. $72,000
12. $48,000

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.
3. Which of the following answers corresponds to the maximum CCA allowed for the company's Class 53 for the year 2020?
5. $1,279,250
6. $1,438,000
7. $773,000
8. None of the choices shown.
9. $1,523,000
10. $1,448,000
11. $1,485,500
12. $1,298,000

QUESTION 5

1. Vanessa moves to Germany and terminates all her ties to Canadaon 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 Vanessa's Canadian residency status for the current year?
2. a.A full-time resident
3. b.A non-resident
4. c.A part-year resident
5. d.A deemed resident (sojourner)

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.
3. Which of the following answers corresponds to the automobile taxable benefit to be included in Ms. High's Net Employment Income for the year?
5. None of the choices shown.
6. $18,841
7. $13,913
8. $0
9. $16,167
10. $8,555
11. $32,460
12. $15,167

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.
3. Which of the following answers corresponds to the stock option benefit to be included in Alex's Net Employment Income for the year 2020?
5. $8,500
6. $25,000
7. $21,000
8. $17,000
9. $4,000
10. $12,500
11. None of the choices shown.
12. $23,000

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.
3. Which of the following answers corresponds to the maximum CCA allowed for the company's Class 3 for the year 2020?
5. $0
6. $67,750
7. $43,000
8. $19,875
9. $19,750
10. $2,600
11. $3,250
12. None of the choices shown.

QUESTION 9

1. MonjieLi has the following sources of income and deductions:
2. Gross Employment income$175,000
3. Deductible Employment Expenses15,000
4. Interest income5,000
5. Taxable capital gainsrealisedduring the year55,000
6. Allowable capital losses suffered during the year20,000
7. Business loss suffered during the year212,000
9. What isMonjie'sNet Income for Tax Purposes?
11. a.NIL
12. b.$94,000
13. c.$175,000
14. d.$215,000
15. e.$182,000
16. f.None of the choices shown.
17. g.$200,000
18. h.($12,000)

QUESTION 10

1. Olin Packett is a CGA-CPA and is employed by a Canadian private corporation.For 2020, his gross salary was $150,000.Olin was awarded a bonus of $10,000 for 2020 based on the performance of the business. One-half of this was paid in December 1, 2020, with the balance paid in March 2021.
2. The following amounts were withheld from his gross salary in 2020:
3. Federal IncomeTax$25,000
4. Employment Insurance Premiums860
5. CanadaPension PlanContributions2,749
6. Registered Pension PlanContributions5,000
7. Charitable contributions (Centraide)1,000
8. For 2020 Olin also had the following taxable benefits:
9. Automobile Benefit$17,900
10. Stock OptionBenefit$11,000
11. Finally, for 2020 Olin also paid for the following expenses, none of which were reimbursed by his employer:
12. Tuition fees for a business managementcourse($2,500)
13. Professional dues paid to CPAassociation($1,600)
14. Premiums paid on life insurancepolicy($1,720)
15. Mortgage interest paid on personalresidence($24,000)
17. Which of the following answers corresponds to Olin's Net Employment Income for the year 2020?
19. $177,300
20. $150,000
21. None of the choices shown.
22. $172,300
23. $182,300
24. $119,471
25. $166,800
26. $147,691

QUESTION 11

1. During the year, Ms. Fata McSolty accepted a promotion with her employer, one of the largest Canadian banks, and had to move from Edmonton to Vancouver.Due to the market conditions in Edmonton, Ms. McSolty had to sell her old residence quickly and suffered a loss of $50,000.Her employer accepted to reimburse her half of her loss, that is, $25,000.With respect to the taxation of the amount of $25,000 received during the year, which of the following statements is correct?
2. a.Only $12,500 of the $25,000 received would be included in the employee's income for the year, representing half of the amount received, because the amount is a reimbursement of a capital loss on the disposition of a personal asset, only half of which would be allowed as a deduction against taxable capital gains.
3. b.None of the amount received is taxable for the employee because the amount received in this case is a reimbursement of expenses by an employer to an employee, and there are no other tax consequences for the employee.
4. c.None of the answers shown.
5. d.Only $5,000 of the $25,000 received would be included in the employee's income for the year because the amount is a reimbursement of an eligible housing loss by an employer to an employee.
6. e.None of the amount received is taxable for the employee because the amount received is not part of the employee's regular salary and the payment is a one-off situation that will likely never occur again.
7. f.The entire amount of $25,000 received is taxable because all amounts paid by an employer to an employee for housing losses are taxable and must be included in income of the employee.

QUESTION 12

1. John Bow is self-employed and his only source of income for 2020 is from his business.His business is expanding rapidly and he expects his taxable income to be substantially higher for 2020 than previous years.He plans to file his 2020 tax return on June 15, 2021.The balance-due date by which any federal income tax payable must be paid without incurring interest costs is:
2. a.December 31, 2021
3. b.December 31, 2020
4. c.None of the choices shown.
5. d.September 15, 2021
6. e.March 15, 2021
7. f.June 15, 2021

QUESTION 13

1. Mr. Wong is an employee that is provided with an automobile that his employer leases at a cost of $1,050 per month 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 Mr.Wong the entire year, except that he didn't use the car for a 3-month period while he was on a disability leave.Mr.Wong drove the car a total of 50,000kms during the year, of which 20,000kms were employment related (fully documented).Mr.Wong reimbursed his employer $1,000 for his personal use of the automobile for the year.
3. Which of the following answers corresponds to the automobile taxable benefit to be included in Mr. Wong's Net Employment Income for the year?
5. $16,800
6. $4,040
7. $25,400
8. $12,440
9. $13,700
10. $17,896
11. $15,800
12. None of the choices shown.

QUESTION 14

1. A company leases office space for its business.The January 1,2020 UCC balance for its CCA class 13 was $259,000 reflecting improvements that were made in January 2019, the year in which the lease commenced. The basic lease term is for 15 years, starting on January 1, 2019, with two successive options to renew for a period of 5 years each.Additional improvements costing $57,000 were made on October1, 2020.
3. Which of the following answers corresponds to the maximum CCA allowed for the company's Class 13 for the year 2020?
5. $15,500
6. None of the choices shown.
7. $51,800
8. $17,450
9. $4,500
10. $17,000
11. $11,400
12. $18,500