Introduction to Federal Income Taxation in Canada 43rd Edition 2022-2023 Edition by Nathalie Johnstone , Devan Mescall , Julie Robson Test bank

CHAPTER 1 Introduction

CHAPTER 2 Liability for Tax 

CHAPTER 3 Employment Income

CHAPTER 4 Income from Business: General Concepts and Rules

CHAPTER 5 The Capital Cost Allowance System For Depreciable Property, Including Intangibles

CHAPTER 6 Income from Property

CHAPTER 7 Capital Gains: Personal

CHAPTER 8 Non-Arm’s Length Transfers and Other Special Circumstances 

CHAPTER 9 Other Sources of Income and Deductions in Computing Income

CHAPTER 10 Computation of Taxable Income and Taxes Payable for Individuals

CHAPTER 11 Computation of Taxable Income and Tax After General Reductions for Corporations

CHAPTER 12 Integration for Business and Investment Income of the Private Corporation

CHAPTER 13 Shareholder-Manager Remuneration and Tax Planning for the Owner-Manager

CHAPTER 14 Rights and Obligations Under the Income Tax Act

CHAPTER 15 Purchase and Sale of a Business – Share Transactions

CHAPTER 16 Corporate Distributions, Asset Sales and Winding-Up, and Sales

CHAPTER 17 Tax Deferred Transactions: Section 85 Rollover on a Transfer to a Corporation

CHAPTER 18 Deferred Transactions: Section 51, 86, 85.1 Amalgamations, Wind-Ups and Estate Freeze Transactions

CHAPTER 19 Partnerships, Trusts and Death of a Taxpayer

CHAPTER 20 International Taxation in Canada

CHAPTER 21  Goods and Services Tax (GST)/Harmonized Sales Tax (HST)

CHAPTER 22 Data Analytics and Information Systems in Tax

Sample for the Test bank introduction to federal income taxation

• 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 2022?
  • A full-time resident
  • A part-year resident
  • A non-resident
  • A deemed resident (sojourner)

• XYZ Inc. provides Samantha Davis with a company car. The car is leased for $800/month (including 13% HST and excluding insurance) and was made available to her for eight months. ABC pays all of the operating costs which amounted to $3,500 in 2022. Samantha drove 13,000 kilometres in 2022 of which 8,000 were for business. What is the minimum taxable benefit that Samantha must include on her 2022 personal tax return?
  • $2,850 rounded
  • $2,100 rounded
  • $6,117 rounded
  • $7,001 rounded

• Which of the following is a taxable benefit?
  • A cash Christmas gift to an employee from the employer valued at $450.
  • Payment of the tuition for an employee completing a degree that will benefit the employer.
  • A 20% discount on the employer’s merchandise, available to all employees.
  • Subsidized meals offered to all employees of the company assuming the price is approximately equal to the cost.6)  River Rose, a sole proprietor, purchased an unlimited life franchise (arm’s length transaction) at a cost of $100,000 during 2022. The maximum tax deduction related to the franchise for the taxation year ending December 31, 2022 is:(a)  $2,500(b)  $3,750(c)  $7,500(d)  $10,0007)  On June 1, 2022 Beta Ltd, a CCPC, purchased a franchise for $115,000. The franchise has a limited life of 13 years. Assuming this is the only depreciable asset owned by Beta, which one of the following amounts represents the maximum amount of capital cost allowance that Beta can deduct for its year ended July 31, 2022? 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, 2022 for $200,000 with a cash down payment of $15,000. The balance of $185,000 is payable on October 31, 2026. 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 2022?

    (a)  $39,000

    (b)  $5,850

    (c)  $7,800

    (d)  $15,600

     

     

    9)  ScarpyLtd., a public company and a manufacturer with a December 31 year-end. On January 1, 2022, the undepreciated capital cost for Class 10.1 was $17,850. The Class 10.1 car was purchased in 2020 for $35,000. During 2022, it was sold for $21,000. A new automobile was purchased for $40,680, which included HST of $4,160. ABC Ltd. is registered to collect and remit HST. What is the maximum CCA allowed combined (rounded to the nearest dollar) for the two cars for 2022?

    (a)  $17,289

    (b)  $17,978

    (c)  $19,967

    (d)  $17,798