Question 7

Even though she is a student who only works part-time, Kimberly likes to make charitable donations to several organizations each year. During the current year, she made donations to the following organizations: - Cancer Society (charity): $1,000 - United Way (charity): $550 - Stollery Childrens Hospital (charity): $600 - Ronald McDonald House (charity): $1,750 - Federal Green Party (political party): $550 Kimberlys net income in the current year was $5,000. Which of the following is the correct charitable donation credit for Kimberly in the current taxation year?

$1,060

$1,291

$1,030

$1,073

$1,103

Question 9

Sarah Smith would like to claim the eligible dependant credit. Which of the following statements is INCORRECT in regards to this credit?

A divorced single parent, with a child (or children) under 18 qualifies for this credit

The maximum amount of the Eligible Dependant Credit is reduced by the Net Income earned in the year by the eligible dependant.

A married parent, living with her spouse, with children under 18, qualifies for this credit

If a single parent has two children under 18, she can elect to claim either one of the children as an eligible dependant each year

Ottawa Corporation has gross business revenues for the year ended October 31, 2019 of $165,500. In addition, the corporation incurred the following expenses during the year: Meals and entertainment expenses: $ 38,000 Amortization and depreciation: $ 69,000 Landscaping costs: $ 32,000 Charitable donations: $ 2,500 You have correctly determined CCA to be $61,000. The corporation also received dividends (income) from other taxable Canadian corporations of $52,000 during the year (this amount is not included in the business revenues noted above). What are the correct amounts for first, Net Income for Tax Purposes, and second, Taxable Income?

		Net Income for Tax Purposes: $103,000; Taxable Income: $51,000.
		Net Income for Tax Purposes: $73,500; Taxable Income: $19,000.
		Net Income for Tax Purposes: $105,500; Taxable Income: $51,000.
		Net Income for Tax Purposes: $21,500; Taxable Income: $19,000.