T/F: If a reserve is deducted for accounting purposes, it must also be deducted for tax purposes.

T/F: Automobile mileage payments made to employees can be deducted, in full, in the determination of business income, regardless of the amount.

Which of the following would be considered by the CRA to be business income rather than property income or capital gains?

A. Profit from the sale of assets that were used to produce business income

B. Profit from the sale of assets that were used to produce property income

C. Profit from the sale of inventory items

D. Both A and C

Which of the following is a deductible expense for an unincorporated business?

A. Donation made to the United Way.

B. Contribution made to the Federal Green Party.

C. Estimated cost of providing warranty services in future taxation years.

D. Reasonable salary paid to a relative.