When shares of stock are sold, their adjusted cost base must be determined on the basis of the weighted average cost of the shares acquired.

T/F

When foreign tax authorities withhold taxes on the foreign source income of a Canadian resident, only the net amount received will be included in the Net Income For Tax Purposes of the Canadian resident.

T/F

When long-term debt is issued at a discount, the discount is subject to a formula to determine if it is fully deductible when the debt is repaid.

T/F

An individual purchased a warehouse as an investment property two years ago. During the current year, he received rents of $8,000 and paid the following expenses; interest of $6,000, property taxes of $2,000, heat, light and power of $500, and maintenance of $300. The maximum CCA that may be claimed is calculated to be $5,600 for the current year. He cannot claim a rental loss in the current year.

T/F

Mutual Funds are committed to distributing their cash flow to their unit holders and do not pay tax on their earnings. The unit holder must pay the tax but is permitted to separate the income into interest, dividends, and capital gains.

T/F