ANSWER BOTH THE MULTIPLE CHOICE QUESTIONS:-

1. Clara is not a resident of Canada. In the year, she had worldwide income of $150,000, including $25,000 of employment income earned in Canada (from directors fees) and $5,000 of interest on Government of Canada bonds. What amount of taxable income must Clara report on her Canadian personal income tax return for the year? *

a) $5,000

b) $25,000

c) $30,000

d) $150,000

2. The deduction for meals under paragraph 8(1)(f ) (sales expenses), is restricted to those incurred while entertaining a client or a customer or a prospective client or customer. Which of the following statements is TRUE? *

a) Deduction for personal meals consumed while travelling is only allowed where the employee is away from the municipality/metropolitan area for a minimum of 12 hours

b) All meal costs, regardless of their nature and purpose, are also restricted by subsection 67.1(1) to 50% of the actual cost.

c) Long-haul truck drivers can deduct up to 80% of their meals.

d) All of the above