QUESTION 5

1. Personal-use property that is antique furniture would qualify as listed personal property of a taxpayer. (3 marks)

   True

   False

3 points

QUESTION 6

1. The specific Income Tax Act section referenced with respect to the deduction of interest expense is: (2 marks)

   	A.	Section 8
   	B.	Section 18
   	C.	Section 20
   	D.	Section 67

2 points

QUESTION 7

1. Mr. Basil has $10,000 in his savings account. He requires $10,000 for a vacation and $10,000 to invest in common shares of a Canadian public company. He plans to borrow the extra $10,000 from his bank and hopes the interest expense will be tax deductible. Mr. Basil should: (3 marks)

   	A.	Use the bank loan to fund his vacation
   	B.	Use the bank loan to fund his share investment
   	C.	Either action will allow an interest expense deduction
   	D.	Neither action will allow an interest expense deduction

3 points

QUESTION 8

1. Mr. Basil has $10,000 in his savings account. He requires $10,000 for a vacation and $10,000 to invest in gold coins. He plans to borrow the extra $10,000 from his bank and hopes the interest expense will be tax deductible. Mr. Basil should: (3 marks)

   	A.	Use the bank loan to fund his vacation
   	B.	Use the bank loan to fund his gold coin investment
   	C.	Either action will allow an interest expense deduction
   	D.	Neither action will allow an interest expense deduction