Which of the following statements with regard to the ITA 54 definition of a principal residence is correct?

Choose the correct answer.

A. The definition of principal residence excludes land, therefore the disposition of land where the principal residence is located will be subject to capital gains taxation.

B. A principal residence is an accommodation owned and inhabited by the taxpayer for at least one year.

C. For each taxation year, the taxpayer and spouse or common-law partner may each designate a property as a principal residence.

D. A principal residence is an accommodation owned and ordinarily inhabited by the taxpayer in the year.

3. The tax benefits associated with an RRSP are

Choose the correct answer.

A. tax deferred earnings and accumulation and government matching on contributions
B. a current tax deduction and government matching on amounts contributed

C. a current tax deduction and tax deferred earnings accumulation

D. a current tax deduction and tax free withdrawals upon retirement