Original and Complete T est Bank Introduc�on to Federal Income Taxa�on in Canada 44e (2023 -2024) Nathalie Johnstone, Dev an Mescall, Julie Robson (100% Original Test Bank, A+ Grade Verified) Part 1: Multiple Choice Exam Questions (Answers at the end) Page 1-64
Part 2: Practice MCQ Questions by Chapter Including the Dynamic Que stions (Answers at the end) Page 65-171
Part 3: Application Questions (Answers at the end of each question) Page 172-560
Download link for all Chapters/ Questions Wo rd/Excel Files at the end of this file. This is The Original Test Bank for 44th Edi�on from the Authors, a ll other Test Bank in the mark et are Wrong with old ques�ons. Multiple Choice Exam Questions ( Q1 to Q139) 1)Tybee lives in Detroit, Michigan, USA. She commutes daily to Waterloo , Ontario,
Canada, where she is employed by Ford Motor Company of Canada Limited. She works 9
am to 5 pm, Monday through Friday. Which one of the following best indicates Tybee ’s
residency status for Canadian income tax purposes for 2023?
(a)A full -time resident
(b)A part -year resident
(c)A non -resident
(d)A deemed resident (sojourner)
2)XYZ Inc. provides Samantha Davis with a company car. The car is le ased for $ 800/month
(including 13 % HST and excluding insurance) and was made available to her for
ten months. ABC pays all of the operating costs which amounted to $3,500 in 2023.
Samantha drove 13,000 kilometres in 2023 of which 8,000 were for business. What is the
minimum taxable benefit that Samantha must include on her 2023 personal tax return?
(a)$3,250 rounded
(b)$2,400 rounded
(c)$6,983 rounded
(d)$8,000 rounded
3)Which of the following is a taxable benefit?
(a)A cash Christmas gift to an employee from the employer valued at $450 .
(b)Payment of the tuition for an employee completing a degree that will benefit the
employer .
(c)A 20% discount on the employer’s merchandise, available to all employees.
(d)Subsidized meals offered to all employees of the company assuming the price is
approximately equal to the cost.
4)Hulk Protein Supplements Ltd. is a CCPC. B ruce Lily, one of the employees, was granted
a stock option on October 11, 2015 for 10,000 shares at $3 per share. Br uce exercised the
stock option on September 30, 2018 when the market price was $6 per share. In
February 2023, Bruce purchased a new home and sold the shares for $7 each. The fair
market value on October 11, 2015 was $4. What is the effect of the above on Br uce’s
income for tax purposes, assuming Br uce wants to minimize taxes?
(a)$15,000 in 2018
(b)$20,000 in 2023
(c)$30,000 in 2018
(d)$35,000 in 2023Part 1 5) Cherizia Gold presents the following information with her 2023 tax return: Capital Gains: Shares $1,600 Personal -use property 850 Listed personal property 900 Capital losses: Shares $ 850 Personal -use property 1,100 Listed personal property 300 Listed personal property losses of prior years 105 Net capital losses from 2020 310 What is the minimum taxable capital gain (rounded to the nearest dollar) to be reported on Cherizia ’s tax return? (a) $ 1,048 (b) $ 623 (c) $ 675 (d) $1, 675 6) River Rose, a sole proprietor, purchased an unlimited life franchise (arm’s length transaction) at a cost of $100,000 during 2023. The maximum amount of capital cost allowance that can be deducted in respect of the franchise for the taxation year ending December 31, 2023 is: (a) $ 2,500 (b) $ 3,750 (c) $ 7,500 (d) $ 8,475 7) On June 1, 2023, Beta Ltd, a CCPC, purchased a franchise for $ 115,000. The franchise has a limited life of 13 years. Assuming that this is the only asset purchased by Beta in the taxation year , which one of the following amounts represents the maximum amount of capital cost allowance that Beta can deduct for its year ended July 31, 2023? Ignore the leap year. (a) $ 115,000 (b) $ 13,269 (c) $ 2,218 (d) $ 7,780 8) Lambda sold a capital property on October 31, 2023 for $200,000 with a cash down payment of $15,000. The balance of $185,00 0 is payable on October 31, 2027. The adjusted cost base of the property was $115,000 and the selling costs were $7,000. Which one of the following amounts represents the minimum taxable capital gain (rounded to the nearest dollar) in 2023? (a) $39,000 (b) $5,850 (c) $7,800 (d) $15,600 9) Scarpy Ltd. is a public company and a manuf acturer with a December 31 year -end. On January 1, 2023, the undepreciated capital cost for Class 10.1 was $17,850 . The Class 10.1 car was purchased in 2021 for $ 35,000. During 2023, it was sold for $21,000. A new automobile was purchas ed for $ 41,810 , which included HST of $ 4,810 . ABC Ltd. is registered to collect and remit H ST. What is the maximum CCA allowed combined (rounded to the nearest dollar) for the two cars for 2023? (a) $ 18,306 (b) $ 18,878 (c) $ 20,984 (d) $17,798 10) Jonas Laliberte is a self -employed therapist . He meets with all of his clients in his 400 square foot home office. The entire house has a square footage of 2,400 square feet. Greg incurred the following costs: Utilities $1,600 House insurance 700 Business liability insurance 500 House maintenance 1,000 Mortgage interest 3,700 Property tax 1,100 Office supplies 500 What are the total expenses deductible from business income? (a) $1,000 (b) $1,350 (c) $1,517 (d) $2,350 11) K Corporation Inc. , a public company, owns a restaurant business that it carries on in rented premises. The lease was signed January 1, 2022 and expires on December 31, 2027 (six years in total), and has two successive renewal options for two years each. K Corporation Inc. had an opening balance in 2023 in Class 13 of $ 26,000 that resulted from $32,000 of leasehold improvements made during the 2022 taxation year. K Corp Inc. made an additional $14,000 of leasehold improvements to the same premises during its 2023 taxation year -end which ends December 31, 2023. What is the maximum CCA that K Corp. Inc. can claim in 2023 for its Class 13 assets? (a) $ 3,000 (b) $ 7,000 (c) $ 6,000 (d) $ 9,000 12) During the 12 -month period ended December 31, 2022 ABC Co. , a CCPC, purchased a $40,000 ( excluding tax of HST of 13%) passenger vehicle for use by its salesperson in conducting his employment. What is the maximum capital cost allowance that ABC Co. can claim for 2022, assuming that the company is a H ST regist rant (i.e., the company remits H ST)? (a) $ 16,200 (b) $ 40,680 (c) $ 20,340 (d) $ 36,000
