Reference no: EM133104495
Questions -
Q1. Franklin Stewart arrived at the following tax information:
|
Gross salary
|
$49,300
|
|
Interest earnings
|
500
|
|
Eligible dividend income
|
140
|
|
Basic personal amount
|
3,650
|
|
Union dues
|
8,740
|
|
Moving expense (50 km for employment)
|
1,690
|
What amount will Franklin report as taxable income?
Q2. What is the average tax rate for a person who paid taxes of $5,136.25 on a total taxable income of $40,820?
Q3. Based on the following data, will Ann Wilton receive a federal tax refund or owe additional taxes in 2019?
|
Taxable Income
|
Tax Rate
|
|
0-$47,630
|
15%
|
|
$47,630-$95,259
|
20.5%
|
|
$95,259-$147,667
|
26%
|
|
$147,667-$210,371
|
29%
|
Net income (line 23600) $51,290
Deductions to determine net income $11,630
Federal income tax withheld $7,099
Total non-refundable tax credit amounts, excluding medical expenses $12,174
Medical expenses $3,000
Q4. Which item is treated equally for all tax payers, regardless of tax bracket?
a. eligible dividends.
b. tax credit
c. dividend income
d. employment income
e. RRSP deduction
Q5. Common examples of __________ income are the returns on investments held in registered retirement saving plans and registered pension plans.
a. tax-exempt
b. lost
c. dividend taxed
d. capital gain taxed
Q6. The use of legitimate methods to reduce one's taxes is tax ____________.
a. evasion
b. avoidance
c. exemptions
d. deferred techniques
e. reductions
Q7. Taxable income is used to compute a person's
a. exemptions.
b. income tax.
c. deductions.
d. tax credit.
e. exclusions.
Q8. Which of the following would result in a reduction of taxable income?
a. portfolio income
b. tax credits
c. union dues
d. business income
e. earned income
Q9. Phillip Marnier had earnings from his salary of $40,000, interest on savings of $700, and a contribution to a registered retirement saving plan of $1,500. Phillip's net income would be
a. $39,200.
b. $40,000.
c. $39,300
d. $38,500.
e. $41,500.
Q10. Jack sold $20,000 worth of stocks that were purchased one year ago for $15,000. He is in a 22% tax bracket. Jack's capital gains taxes are:
a. $500.
b. $550.
c. $1,100.
d. $2,500.
e. $4,400.
Q11. Reductions from gross income for such items as registered retirement account contributions and RESP payments will result in
a. business income
b. taxable income.
c. earned income.
d. net income.
e. total exclusions.
Q12. Which of the following is a standard tax credit?
a. child care expenses
b. RRSP contributions
c. Union Dues
d. the basic personal amount
e. moving expenses
Q13. Which of the following is an example of a tax credit?
a. mortgage interest
b. capital losses
c. individual retirement account contributions
d. caregiver and medical expenses
e. net business income
14. Anne had earnings from her salary of $40,000 and a contribution to a registered retirement saving plan of $1,500, and a contribution of $5000 to a TFSA. Anne's' net income would be
a. $33,500.
b. $35,000
c. $38,500
Q15. Increases in the value of assets since their original purchase date such as: stocks, bonds, and real estate.
a. Employment
b. Net business
c. Investment
d. Capital gains
e. Other