Question a)

Mr. Dayani purchases an annuity with funds from his savings account on January 1, 2016. The annuity has a 5 year term, and cost him $25,000. Payments are made annually on December 31 in the amount of $5,772. The annuity provides an effective yield of 5%. How much of the annuity payment is taxable in 2016?

	$772
	$1,250
	$5,000
	Nil

Question b)

Under ITA 73(1) and 73(1.01), when there is a transfer of non-depreciable property from an individual to his/her spouse, the proceeds are deemed to be the UCC of the class.

	True
	False

Question c)

RESP: payments made to subscribers out of the accumulated income of the RESP plan would be included in the subscriber's Net Income for Tax Purposes, but not Taxable Income.

	True
	False