Reference no: EM133019468

Question 1 Which of the following statements is true about personal taxes in Canada?

a) Individual and corporate marginal tax rates are the same.

b) Capital gains and interest income are taxed at the same rate for individuals.

c) Dividends received from Canadian corporations are taxed differently than dividends received from US corporations.

d) Capital losses occur when a depreciable asset is sold below its original purchase price.

Question 2

Assume the following information from the financial statements of ReStateM Company.

Net income $10,000

Depreciation $3,000

Salaries $5,000

Deferred income taxes $2,000

Change in accounts receivable $4,000

Change in accounts payable -$5,000

Change in inventory -$2,000

Capital expenditures $1,500

The traditional cash flow for ReStateM Company is:

a) $13,000

b) $8,000

c) $15,000

d) $10,000

Question 3.

Which of the following statements is true?

a) The CCA rate is the same for most asset classes, with the exception of land.

b) When an asset is sold, the salvage value is added to the aggregate value of the asset class.

c) If no assets are bought or sold, the CCA amount will be constant over time

d) In the year of the acquisition, the CCA claim is based on half the cost of the asset.