Question 1

Which of the following best summarizes the correct process?

Accepted Answer

A) Calculate total income,subtract tax credits and deductions,determine refund or balance owing. 
B) Add all deductions and subtract the credits from total income,determine refund or balance owing. 
C) Calculate total income,deduct RRSP contribution,apply tax credits and deductions,determine refund or balance owing. 
D) Calculate total income,subtract deductions,calculate taxable income,apply tax credits,determine refund or balance owing. 
A) Calculate total income,subtract tax credits and deductions,determine refund or balance owing. 
B) Add all deductions and subtract the credits from total income,determine refund or balance owing. 
C) Calculate total income,deduct RRSP contribution,apply tax credits and deductions,determine refund or balance owing. 
D) Calculate total income,subtract deductions,calculate taxable income,apply tax credits,determine refund or balance owing.

Question 2

The Basic Personal Amount is a non-refundable tax credit that reduces ones taxes by $11 138 in 2014.

Accepted Answer

A) True 
 B)False

Question 3

Sally's total income is $38 000 and she divorced last year.She does not own a home,but has charitable contributions of $1500 and interest on her car of $2100.This year she also paid spousal support of $2000,child support of $5000,and tuition of $2600.Her basic personal amount is $11 138.What is Sally's taxable income?

Accepted Answer

A) $34 500 
B) $31 900 
C) $36 000 
D) $20 762 
A) $34 500 
B) $31 900 
C) $36 000 
D) $20 762

Question 4

If a stock was purchased in January 2004 for $1000 and sold in December 2005 for $3000,what is the taxable result?

Accepted Answer

A) Taxable capital gain of $2000 
B) Taxable capital gain of $1000 
C) Income of $2000 
D) Annual taxable gain of $500 
A) Taxable capital gain of $2000 
B) Taxable capital gain of $1000 
C) Income of $2000 
D) Annual taxable gain of $500

Question 5

Which of the following can be used to reduce your federal income taxes?

Accepted Answer

A) Child support payments for a six year old 
B) Real estate taxes 
C) Provincial income taxes 
D) Student loan interest 
A) Child support payments for a six year old 
B) Real estate taxes 
C) Provincial income taxes 
D) Student loan interest

Question 6

Reginald is thinking about asking his employer to defer a $5000 bonus to next year's income because he would have to pay $2050 in tax if he received it this year.What should he do?

Accepted Answer

A) If his marginal tax rate next year will be less than 35 percent he should consider deferring it. 
B) He should take the bonus now because of the opportunity cost. 
C) If his marginal tax rate next year will be less than 45 percent,he should defer it to next year. 
D) If his marginal tax rate next year will be less than 41 percent,he should defer it to next year. 
A) If his marginal tax rate next year will be less than 35 percent he should consider deferring it. 
B) He should take the bonus now because of the opportunity cost. 
C) If his marginal tax rate next year will be less than 45 percent,he should defer it to next year. 
D) If his marginal tax rate next year will be less than 41 percent,he should defer it to next year.

Question 7

Union dues and spousal support payments can be deducted in the calculation of taxable income.

Accepted Answer

A) True 
 B)False

Which of the following best summarizes the correct process?

The Basic Personal Amount is a non-refundable tax credit that reduces ones taxes by $11 138 in 2014.

If a stock was purchased in January 2004 for $1000 and sold in December 2005 for $3000,what is the taxable result?

Which of the following can be used to reduce your federal income taxes?

Reginald is thinking about asking his employer to defer a $5000 bonus to next year's income because he would have to pay $2050 in tax if he received it this year.What should he do?

Union dues and spousal support payments can be deducted in the calculation of taxable income.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters

Exam 4: Tools for Financial Planning - Using Tax Concepts for Planning

Which of the following best summarizes the correct process?

The Basic Personal Amount is a non-refundable tax credit that reduces ones taxes by $11 138 in 2014.

If a stock was purchased in January 2004 for $1000 and sold in December 2005 for $3000,what is the taxable result?

Which of the following can be used to reduce your federal income taxes?

Reginald is thinking about asking his employer to defer a $5000 bonus to next year's income because he would have to pay $2050 in tax if he received it this year.What should he do?

Union dues and spousal support payments can be deducted in the calculation of taxable income.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters