Which of the following statements is correct?

A. Net Property Income = Dividends received plus the gross-up minus the dividend tax credit.

B. Net Property Income = Dividends received minus the gross-up minus the dividend tax credit.

C. Federal Tax Payable = Federal tax on grossed-up dividends minus the dividend tax credit.

D. Federal Tax Payable = The gross up on dividends received minus the dividend tax credit.

The federal dividend tax credit cannot be claimed if you receive:

A. Eligible dividends.

B. Non-eligible dividends.

C. Stock dividends.

D. Capital dividends.

Fergus owns a rental property. Instead of hiring contractors he does all of the property maintenance and repairs himself, keeping careful records. Which one of the following amounts is not a deduction for tax purposes?

A. $700 for shrubs and flowers.

B. $150 for bookkeeping services.

C. $400 for lumber, paint and hardware.

D. $500 for his labour (50 hours @ minimum wage of $10 per hour).