QUESTION 12

Linda and Barry, a married couple has the following information for this year:

• Linda's Earned and Net income: $20,000
• Barry's Earnedand Netincome: $1,200
• 1st child is 5 years old
• 2ndchild is 15 years old
• Nanny/Child Care Expenses (not camps): $50,000

What is themaximum Child Care Expense deduction on Line 21400 for this family this year?

QUESTION 13

This year, Jeff has the following Capital Gains/Loss transactions:

1. 1. Sold ABC Shares: Proceeds was $4,000, Cost was $2,000
2. 2. Sold LPP Assets: Proceeds was $5,000, Cost was $500.
3. 3. Sold XYZ Shares: Proceeds was $7,000, Cost was $15,000

This year, Jeff will report is Minimum Taxable Capital Gains on Line 127000to be:

1. $(2,000)
2. $3,000
3. $0
4. ($1,500)

QUESTION 14

This Year, Mary donated $10,000 to a Hospital, a Registered Charity

This Year, Mary's net income and taxable income were $100,000.

Mary's maximum charitabledonation credit is:

1. $2,872
2. $2,900
3. $0
4. $3,264

QUESTION 15

This year, Larry has operated a business and reported the following GAAP based Accounting figures:

1. Revenue: $10,000
2. Depreciation Expense: $1,000
3. Meal and Entertainment : $2,000
4. Sales and Marketing Expense: $1,000

Asset:Class 8-20%,Furniture:UCC was $10,000;Purchased new furniture this year: $20,000.

Please choose the best answer?

1. This year, Larry's Business Income/Loss is -$1,000, and Maximum CCA, for this year, is $8,000
2. This year, Larry's Business Income/Loss is $4,000 and Maximum CCA, for this year is $3,000
3. This year, Larry's Business Income/Loss is $4,000, and the Maximum CCA, for this year is $6,000
4. This year, Larry's Business Income/Loss is $0, andthe Maximum CCA, for this year is $8,000

QUESTION 16

This year, Betty had a commercial rental property and reports the following, in order to calculate her rental income or rental loss in 2020.

1. Rental Revenue: $10,000
2. Property Tax Expense: $2,000
3. Insurance Expense: $3,000
4. Betty's personallabour fee: $1,000
5. Maximum CCA: $2,000 (apply the maximum if possible per class review)

Please choose the best answer?

1. TheRental Income is, $3,000 and CCA cannot create or increase a Rental Income Statement Loss
2. TheRental Income is $2,000 and CCA cannot create or increase a Rental Income Statement Loss
3. TheRental Income is,$3,000 and CCA can create or increase a Rental Income Statement Loss
4. TheRental Income is, $0 and CCA cannot create or increase a Rental Income Statement Loss

QUESTION 17

Last year George had the following income reported to CRA:

Employment:$40,000

Dividends:$30,000

Rental Income of $10,000

Taxable Capital Gains:$2,000

Last Year's Pension Adjustment was $2,000

What is George's maximum RRSP purchase for this year?

1. $12,760
2. $5,200
3. $7,000
4. $9,000

QUESTION 18

Lily Zhao is a commission salesperson who is required to have an office in her personal residence. Which of the following home office related costs cannot be included in the amount that she deducts for this office?

1. Property taxes
2. Auto License Fees
3. Maintenance costs
4. The constructioncost of a new family washroom