Dylan makes $120,000 annually. The provincial tax credit in his province on charitable donations is 10%...
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Dylan makes $120,000 annually. The provincial tax credit in his province on charitable donations is 10% on the first $200, and 18% on amounts over $200. The federal tax credit on charitable donations is 15% on the first $200, and 29% on amounts over $200. Dylan owns a whole life insurance policy, based on his own life, with a face value of $350,000, an adjusted cost basis (ACB) of $26,000, and a cash surrender value (CSV) of $42,000. Dylan decides to assign his policy to a registered charity. Which of the following statements about the implications of the policy assignment is CORRECT? Dylan incurs no taxable policy gain and receives a tax credit (federal + provincial combined) of $7,426. Dylan incurs no taxable policy gain and receives a tax credit (federal + provincial combined) of $19,696. Dylan incurs a taxable policy gain of $16,000 and receives a tax credit (federal + provincial combined) of $7,426. Dylan incurs a taxable policy gain of $16,000 and receives a tax credit (federal + provincial combined) of $19,696. Oa) Ob) Oc) Od) Dylan makes $120,000 annually. The provincial tax credit in his province on charitable donations is 10% on the first $200, and 18% on amounts over $200. The federal tax credit on charitable donations is 15% on the first $200, and 29% on amounts over $200. Dylan owns a whole life insurance policy, based on his own life, with a face value of $350,000, an adjusted cost basis (ACB) of $26,000, and a cash surrender value (CSV) of $42,000. Dylan decides to assign his policy to a registered charity. Which of the following statements about the implications of the policy assignment is CORRECT? Dylan incurs no taxable policy gain and receives a tax credit (federal + provincial combined) of $7,426. Dylan incurs no taxable policy gain and receives a tax credit (federal + provincial combined) of $19,696. Dylan incurs a taxable policy gain of $16,000 and receives a tax credit (federal + provincial combined) of $7,426. Dylan incurs a taxable policy gain of $16,000 and receives a tax credit (federal + provincial combined) of $19,696. Oa) Ob) Oc) Od)
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Related Book For
Introduction to Probability and Statistics
ISBN: 978-0495389569
13th edition
Authors: William Mendenhall, Robert J. Beaver, Barbara M. Beaver
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