Which of the following statements is correct?

A) The federal dividend tax credit is equal to 38 percent of the eligible dividends received.

B) The federal dividend tax credit is equal to 6/11 of the gross up on eligible dividends received.

C) The federal dividend tax credit is equal to 15 percent of the non-eligible dividends received.

D) The federal dividend tax credit is equal to 6/11 of the gross up on non-eligible dividends received.

8. The adjusted cost base (or capital cost) of an asset includes a number of costs. Indicate which cost would NOT be considered part of the capital cost.

A) Legal fees incurred to acquire the asset.

B) Duties paid on the asset.

C) Fire and theft insurance paid on the asset.

D) Non-refundable provincial sales taxes paid on the asset.

E) An appropriate allocation of overhead.

1. With respect to spousal and child support, which of the following statements is NOT correct.

A) Any amounts that are not specifically identified in the agreement as spousal support will be considered child support.

B) An amount qualifies as a support payment only if it is payable or receivable on a periodic basis.

C) The recipient of child support payments will include this amount in income.

D) Deductible support payments reduce the taxpayer's Earned Income for RRSP purposes.

10. With respect to RRSP contributions, which of the following statements is correct?

A) Contributions made during the current year and within 30 days of the end of the current year, must be deducted in the current year.

B) Contributions in excess of available deduction room cannot be deducted in the current year or in any subsequent year.

C) There is no penalty for making contributions that are in excess of available deduction room.

D) Contributions made during the current year can be deducted in any subsequent year