please write the correct answers

1)We should use the average tax rate to calculate the after-tax investment income such as dividend, capital gain etc.

Select one:

O a. False O b. True

2) Tax credits are used to reduce tax.

O a. by deducting them from total income

O b. before you subtract all deductions

O c. when calculating total income

O d. after total taxes payable are calculated

3) Which would reduce taxes the most for a high income earner (income over $100,000)?

O a. $4,800 CPP contribution

O b. $4,800 basic personal amount

O c. They are all the same

O d. $4,800 RRSP contribution

4) Moving expenses paid by the taxpayer for the purpose of starting a new job or to attend university, college, or another educational institution as a full-time student are tax deductible, as long as the taxpayer is moving at least kilometres closer to the job or institution.

O a. 40

O b. 80

O c. 20

O d. 60

5) When taxable income on a progressive basis exceeds certain thresholds,

O a. the tax rate is increased on the next dollars of income until a new income level is reached.

O b. a higher rate of tax is charged on all

income.

O c. deductions reach a maximum allowable

amount.

O d. tax credits become more important.

6) Which of the following can be deducted from income for the purpose of calculating taxable income?

Select one:

O a. Interest expenses incurred for borrowing money to buy dividend paying stocks

O b. Fees paid to a tax preparer to file tax

return

c. All of the above

O d. Fees paid to financial advisor to earn

dividend income

7) The average tax rate is always higher than marginal tax rate.

Select one:

O a. True

O b. False

8) Income spreading is used when members of the same family are in different tax brackets

Select one:

O a. True

O b. False

9) Contribution to which of the following will allow you to reduce your taxable amount, i.e., allow to reduce your tax amount?

Select one:

O a. RESP O b. TFSA

O c. None of these is correct

O d. Regular savings account

10) In 2016 Kiran sold, for $450,000, the house where he and his family had lived for the last seven years.

He bought the house for $300,000 in 2012. Kiran is in the 26% income tax bracket. How much tax, if any, he had to pay on the gain for selling his house?

Select one:

O a. $7,000

O b. $19,500

O c. $39,000

O d. None of these amount is correct

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

O a. Annual taxable gain of $500

O b. Income of $2000

O c. Taxable capital gain of $2000

O d. Taxable capital gain of $1000

12) Melanie, a homeowner, has mortgage interest of $3000, RRSP contributions of $1500, and charitable contributions of $500. According to her filing status, a basic personal amount of $12,298 is allowed. How much should Melanie deduct on her tax return

O a. Her only deduction is the $1500 RRSP

contribution.

O b. She can deduct $13 798, her basic personal amount and her RRSP contribution

O c. She can deduct $14 298, her basic

personal amount, charitable donation and her RRSP contribution.

O d. She has deductions of $2000 for her RRSP

and charitable donation.

13) George has gone to his local bank to make a $4,000 withdrawal from his RRSP and he asked the bank's representative to have the net proceeds deposited to his chequing account. What is the amount of cash that will be deposited to his chequing account?

Select one:

O a. $3,600

O b. $3,900

O c. $3,400

O d. $4,000

O e. None of these is correct

14) Jason, in Mississauga, Ontario owns 500 shares in Nirvana Healthcare, a pharmaceutical company, located in Buffalo, New York. The company recently declared and paid dividend of $1.50/ share. Assuming Jason's marginal tax rate is 22%, approximately how much tax he has to pay on this dividend income?

Select one:

O a. $24

O b. $0

O c. None of these is correct

O d. $55

O e. $38

15). Marta received an inheritance of $20 000 and wants to allocate it towards her six-year-old son's education in the most effective manner. Which of the following considerations will have the greatest financial impact

O a. Contributing to an RESP in such a way as

to collect the maximum Canada Education

Savings Grant

O b. Applying for the Canada Learning Bond as

soon as possible

O c. Benefiting from the tax deferral in an RESP account as quickly as possible

O d. Collecting the maximum Educational

Assistance Payments in the RESP account

16) Besides using fund for a down-payment when purchasing a house for 1st time, one can also withdraw fund from RRSP without paying withholding tax for which of the following:

Select one:

O a. Paying for medical expenses

O b. Paying for lifelong learning expenses

O c. Paying for traveling expenses

O d. Paying for moving expenses

17) Moving expenses paid by the taxpayer for the purpose of starting a new job or to attend university, college, or another educational institution as a full-time student are tax deductible, as long as the taxpayer is moving at least kilometres closer to the job or institution.

O a. 40

O b. 80

O c. 20

O d. 60