With regard to the ITA 110.2 lump sum payments deduction, ________.

	this deduction is available to taxpayers who received lump sum severance payments that relates to a termination of employment without cause during the current taxation year
	the purpose of this deduction is to ensure that certain government assistance payments are not subject to income tax
	this deduction is available to taxpayers who received certain lump sum payments that relate to previous taxation years and would normally be received by the taxpayer periodically over time
	this deduction is available for all taxpayers who received lump sum social assistance payments

An allowable business investment loss (ABIL) is _____________

Question 5 options:

	equal to two-thirds of a business investment loss (BIL) as defined in ITA 39(1)(c)
	a special type of capital loss that can be deducted from any source of income
	a special type of capital loss that can only be deducted against taxable capital gains
	a special type of capital loss resulting from the disposition of shares or debt of a Canadian insurance corporation

During the current taxation year, Ernie Fisher earned the following sources of income:

Net employment income: $42,600

Net business income: $11,750

Net farm income: $2,800

Taxable capital gains: $9,600

Ernie also has the following loss carry forward balances available at the beginning of the current taxation year:

Restricted farm losses: $4,900

Non-capital losses: $15,420

Net capital losses [(1/2)($21,000)]: $10,500

Which of the following correctly lists Ernie's net income for tax purposes and minimum taxable income for the current taxation year?

Question 2 options:

	$61,950; $38,930
	$61,950; $38,030
	$66,750; $38,930
	$66,750; $36,830