Question a.

Jagan has income from employment of $25,000 during the year. As well, he has a capital gain on Listed Personal Property of $8,000 on the sale of a stamp collection, and a capital gain from the sale of some shares of $6,000. Last year, he had a capital loss on Listed Personal Property of $10,000 that he was unable to use and carried forward to the current year. What is his net income for tax purposes for the year, assuming that this accounts for all of his income for the year?

	$31,000
	$27,000
	$28,000
	None of the options are correct.

Question b.

Carrie Weems is a full-time teacher in Waterloo, Ontario, who spends all of her weekends and holidays operating a farm she purchased this year. She is confident that within two years her farm will be making a profit. In the current year, the farm had a loss of $18,000 and her employment income from teaching was $85,000.

In the current year, she can deduct a maximum of $9,000 of the farm loss against all her other income.

	True
	False