Reference no: EM132962502
Questions -
Q1) Today, the Chamberlains will establish and contribute to an RESP for Neville. What statement is FALSE?
a) The RESP must be terminated no later than the end of the year in which Neville turns 36 years of age.
b) If the Chamberlains' make an initial RESP contribution of $10,000, a Canada Education Savings Grant (CESG) in the amount of $500 will be credited to the plan for this year.
c) Subject to available contribution room, the last contribution to the RESP must be made no later than the end of the year in which Neville turns 32 years of age.
d) The maximum amount the Chamberlains can open the RESP with is $50,000.
Q2) The Chamberlain's are curious to find out how much they would need to set aside each year to fully fund a four-year university program for Neville if their saving is done outside of an RESP. Effective immediately, how much will they need to save at the beginning of each year for this purpose if Neville will begin university in 17 years? Assume investment returns will remain fixed at 6% and ignore any potential tax implications.
a) $4,122
b) $4,582
c) $4,993
d) $5,299
Q3) What is the MAXIMUM contribution Joshua can make to his RRSP such that he does not incur any penalties?
a) $15,200
b) $17,200
c) $24,120
d) $24,596
Q4) What statements regarding Joshua's HBP withdrawal are true?
Joshua's first HBP repayment amount is due no later than 60 days following next year's year-end.
Joshua's first HBP repayment amount is due no later than 60 days following this year's year-end.
Joshua's first HBP repayment amount will be $667.
Joshua's first HBP repayment amount will be $1,000.
a) i and iii
b) ii and iii
c) i and iv
d) ii and iv
Q5) What amount was Kate required to contribute to the Canada Pension Plan last year?
a) $1,757
b) $3,020
c) $3,515
d) $5,089
Q6) To improve her financial position and to improve tax-efficiency, Kate is wondering about the possibility of taking certain measures through her business rather than on a personal level. What statement is true?
a) Kate can decrease her personal taxable income by claiming all of the partnership's CCA.
b) Kate can attain a better tax status by taking a salary from the partnership.
c) Kate and Suzanne can establish a DPSP through the partnership to obtain tax deductions.
d) If Kate and Suzanne incorporate their business they may be able to do so with no immediate tax implications.
Q7) What is the MAXIMUM amount Kate can claim as a business-use-of-home expense on her income tax return for last year?
a) $1,900
b) $2,263
c) $2,560
d) $3,132
Q8) Last year, Joshua developed a kidney condition due to his poor diet. During the course of the year, his condition worsened (although it was not severe or life threatening) and he required surgery. As a result, he was off work for nine weeks. Which scenario is MOST LIKELY to have occurred during Joshua's period of disability?
a) Joshua would have received approximately $6,000 in disability benefits from his group plan.
b) Joshua would have been eligible for Workers' Compensation Board payments.
c) Any disability benefits Joshua received would be taxable income.
d) Joshua would have been eligible to receive CPP disability benefits.
Q9) What is the EARLIEST age Joshua can retire and receive unreduced pension benefits?
a) 55 years and 6 months
b) 57 years and 9 months
c) 60 years
d) 65 years
Q10) What statement is true with regards to the $30,000 received from Kate's parents?
a) If they pay the loan back four years from December 31st of this year with accrued interest of 4% a year, the loan balance will be approximately $35,096.
b) The Chamberlains will be able to deduct the interest payable on the loan for tax purposes.
c) It they do not pay the loan back, the Chamberlains will have to include the loan amount plus interest as income for tax purposes.
d) Income attribution will not apply on this loan.