Question 3 (1 point) Which of the following statements regarding farming income is correct? a) A full-time lawyer has income from his part-time farming activities. His farming income must be calculated on an accrual basis. Ob) A full-time lawyer has income from his part-time farming activities. His farming income must be calculated on a cash basis. c) A full-time lawyer recognized a $11,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $7,000. d) A full-time lawyer recognized a $11,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $2,500. Question 4 (1 point) The widow received a death benefit totalling $25,000 from her spouse's employer. She must include the $25,000 in income in the year of receipt. a) True b) False Question 5 (1 point) When an individual die, there is a deemed disposition of all of his capital property at fair market value, without regard to his relationship to the beneficiary of his estate. a) True Ob) False Question 6 (1 point) Frank owns land with an adjusted cost base of $325,000 and a fair market value of $425,000. He gifts the land to his son for no consideration i.e., for $0. Which of the following statements is correct? a) Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $325,000. b) Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $425,000. c) Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $325,000. d) Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $425,000