question 4.5.6

Question 4 (1 point) When establishing whether the sale of an asset is capital income or business income, which of the following is not one of the factors which the courts take into consideration when determining the original intention of a transaction? O A) Relation of transaction to taxpayer's business OB) Canadian residency test OC) Number and frequency of transactions OD) Period of ownership Question 5 (1 point) Which of the following statements with respect to the taxation of capital gains is not correct? O When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset. O Gains resulting from dispositions of personal use capital assets are subject to tax. Listed personal property losses are capital losses deductible against other capital gains. When a part of a group of identical securities is sold, the adjusted cost base of the shares sold must be based on the average cost of the group. Question 6 (1 point) Mandy holds shares in Y Co. Recently, the shares have been experiencing a decline in market value. She originally purchased 1000 shares in 20X0 at $5 per share. On September 22nd of 20X1 she sold the shares when they were trading for only $3 per share. On October 3rd she felt optimistic that the market value would rise substantially by the end of the year, so she repurchased 1000 shares of Y Co. at $2.50 per share. Which of the following is true for Mandy? A Mandy can recognize a $2,000 capital loss on the sale of her shares on her 20X1 tax return. B) Mandy can recognize a $2,000 superficial loss on the sale of her shares on her 20X1 tax return. C) The adjusted cost base of Mandy's new shares is $4,500. D) The adjusted cost base of Mandy's new shares is $2,500