Reference no: EM132663028
Questions -
Q1. Which of the following statements regarding income tax law in Canada is true?
a) Income tax laws are published in income tax folios.
b) Income Tax Regulations are not laws.
c) The Department of Finance enforces income tax law.
d) The Canada Revenue Agency enforces income tax law.
Q2. Which of the following employment benefits is taxable to the employee?
a) Employer contributions to an employee life and health trust
b) Employer contributions to a group term life insurance policy
c) Employer-paid retirement counselling services
d) Employer contributions to a supplementary unemployment benefit plan
Q3. Mary Jane is an employee of a bank listed on the Toronto Stock Exchange. In January 2019, she was granted 100 stock options to purchase shares of the bank with an exercise price of $10 per share. At that time, the shares were trading at $9 per share. She exercised all 100 stock options in November 2019 when the shares were trading at $11 per share. She sold the shares for $13 in December 2019. What is her 2019 employment income inclusion?
a) $50
b) $100
c) $150
d) $200
Q4. Pham, a salaried engineer, uses his own vehicle to perform employment duties. He would like to deduct expenses related to the use of his vehicle from his employment income. Which of the following is a condition necessary for him to deduct the expenses?
a) Pham is required to be away from the municipality where the employer's establishment is located for at least 12 hours.
b) Pham receives a reasonable allowance for the vehicle expenses.
c) Pham's employment contract requires him to pay for vehicle expenses incurred for employment purposes.
d) Pham earns commission income.
Q5. Albert is a commission sales representative who is required to maintain a home office to perform 60% of his employment duties and to pay for all the expenses incurred. Which of the following expenses can be deducted as a home office expense?
a) Property taxes
b) Capital cost allowance
c) Mortgage interest
d) Travel expenses