QUESTION 24

1. Capital gains is best described as:

	A.	The increase in the market value of current assets.
	B.	The increase in value of shareholders' equity.
	C.	The growth in value of investments that were purchased at a lower price than the amount sold
	D.	The increase in the market value of long-term capital assets.
	E.	The increase in value of a firm's intangible assets.

QUESTION 25

1. CCA Half-year rule is best described as:

	A.	An accounting rule that is not allowed under CRA requirements.
	B.	CRA's option to depreciate the asset over half of its useful life.
	C.	CRA's requirement to figure CCA on only one-half of an asset's cost for its first year of use.
	D.	CRS's option to value the assets at one-half of its value for the duration of use.

Question 26

A deposit of $10,000 will increase to $12,500 in 5 years. Determine the annual rate of interest of this deposit, and then calculate the balance if you withdraw at the end of year four. Round the answer to the nearest dollar.

	A.	$11,954
	B.	$10,549
	C.	$11,495
	D.	$10,954
	E.	$11,549

QUESTION 27

1. You are considering an investment project that you pay out $920 now. You will receive $210 next year, $257 in year 2, $578 in year 3 and finally $799 in year four. Your minimum return rate is 0.057%. How much this project is worth to you today? Round your answer to two decimals.

(Please note: percentage is expressed in decimals in all questions, e.g. 14% is expressed as 0.14%)

QUESTION 28

1. In 2020, Kanya Construction bought a new equipment priced $969,885. Kanya trade in the old equipment for $126,980. The new equipment qualified for a CCA class with a rate of 25%. There was no previous equipment under this class. Calculate the CCA amount that Kanya can claim in 2020. Round your answer to the nearest dollar.