What is the amount of federal tax payable

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Problem 1: With respect to the lifetime capital gains deduction, which of the following statements is NOT correct?

A. The deduction is only available to individuals.

B. The Cumulative Gains Limit is reduced by any CNIL balance at the end of the year.

C. The Annual Gains Limit is reduced by Allowable Business Investment Losses realized during the year.

D. The deduction is available on any disposition of shares or debt of a qualified small business corporation.

E. None of the above

Problem 2: Elena is 12 years old. During 2019 she earns interest of $10,500 on funds she inherited when her maternal grandfather died, as well as non-eligible dividends of $15,300 received from a CCPC that is controlled by her father. Her only tax credits are the basic personal credit and the dividend tax credit. What is the amount of her federal Tax Payable for 2019?

A. 815

B. 4218

C. 2408

D. 3983

E. None of the above

Reference no: EM132724402

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