Quiz 6 acct226 PDF

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Quiz 6 acct226...

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1.

With respect to the federal political contributions tax credit, which of the following statements is correct? A. B. C. D.

2.

Contributions made to any registered political party are eligible for the credit. Contributions made to a candidate at the time of a federal general election are eligible. The credit is equal to 29 percent of the eligible contributions made. There is no upper limit to the amount of the credit that can be claimed, as long as the contributions are made within the legal limits governing campaign contributions.

Shamus provides support for the following dependants: His 42-year-old spouse who has a physical infirmity. His 63-year-old father who has a mental infirmity. His 67-year-old mother who is in good health. His 12-year-old son who has a physical infirmity. He can claim the regular Canada caregiver credit (based on $6,883 for 2017) for: A. B. C. D.

3.

Which of the following relatives may NOT be used to claim the eligible dependant tax credit? A. B. C. D.

4.

Healthy grandfather age 65. Healthy daughter age 9. Mentally infirm spouse age 65. Mentally infirm brother age 19.

Which of the following relatives may NOT be used to claim the regular Canada caregiver tax credit ($6,883 for 2017)? A. B. C. D.

5.

His father only. All of the listed dependants. His mother only. His spouse, his father, and his mother.

A physically infirm 62-year-old aunt. A mentally infirm 21-year-old child. A healthy 67-year-old grandfather. A physically infirm 35-year-old sister.

During 2017 Fred had the following amounts deducted from his pay: CPP$2,564 EI Union Dues United Way Donation

836 1,500 2,000

He can use all of the above to calculate federal tax credits except: A. B. C. D. 6.

Joe, who is single, supports his 80- y e a r- o l d blind mother who has no income and lives in a nursing home. Which of the following federal tax credits can he claim for his mother? A. B. C. D.

7.

CPP EI Union Dues United Way Donation

Disability tax credit only. Disability tax credit and Canada caregiver tax credit only. Disability tax credit and eligible dependant tax credit only. Canada caregiver credit only.

Hilda is a 67-year-old widow. She lives in an apartment with her old 12-year-old granddaughter, Sue. Both of Sue’s parents are on a two-year expedition to remote areas of the Yukon. They provide all financial support for Sue and speak with her weekly via satellite. Which of the following federal tax credits can Hilda claim

regarding Sue? A. B. C. D. 8.

Eligible dependant tax credit. Canada caregiver tax credit (child under 18). Canada caregiver tax credit (regular). No tax credits available.

Jennifer is single with no dependants. During the year she had the following amounts deducted from her salary: CPP$2,564 EI Federal Income Tax

836 15,000

Based on this information, Jennifer’s total federal tax credits for 2017 will be: A. B. C. D. 9.

$510 $2,255 $2,432 $2,760

Bill is single with no dependants. For 2017 his net income for tax purposes was $80,000, his Taxable Income was $70,000 and his medical expenses tax credit was $300. How much were his eligible medical expenses? A. B. C. D.

$2,000 $4,268 $4,400 $4,100

10. Harry is divorced with net income for tax purposes of $50,000. His 21-year-old dependent daughter, Ann had net income for tax purposes of $15,000. During 2017 Harry paid a total of $2,500 for eligible medical expenses for Ann. Harry had no medical expenses of his own. Harry’s medical expenses tax credit for 2017 is: A. B. C. D.

$35 $150 $308 $2,050

11. Mildred has $300 budgeted for donations. It will go either to the SPCA (a registered charity) or the Green Party (a registered federal political party). If she gives the money to the Green Party, her tax credit will be A. B. C. D.

The same amount that she would get from donating to the SPCA. $180 more than she would get from donating to the SPCA. $138 more than she would get from donating to the SPCA. $166 more than she would get from donating to the SPCA.

12. Adam is self-employed. He might be eligible for all of the following federal tax credits except: A. B. C. D.

CPP tax credit. EI tax credit. Canada employment tax credit. Working Income Tax Benefit tax credit.

13. Oscar is 73 years old. His 2017 net income for tax purposes from his RRIF and other investments is $120,000. He lives with his common-law partner, Felix who is 63 years old. Felix’s only income for 2017 was investment income of $6,000. Oscar can claim all of the following federal tax credits except: A. B. C. D.

Basic personal tax credit. Age tax credit. Pension tax credit Spousal tax credit

14. With regards to the transfer of education related credits, which of the following statements is NOT correct? A. If the student is married, the tuition credit can be transferred to either the spouse or a parent.

B. Any education related amounts that are not transferred to another person can be carried forward and claimed by the student. C. Credits related to tuition paid to a university outside of Canada cannot be transferred to another person. D. Credits related to interest paid on a student loan cannot be transferred to another person....