4561 final content exam with Q3 updated for 2008

4561 final content exam with Q3 updated for 2008 - (Fall 08...

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(Fall 08 students: These Summer 2008 exam scenarios were 2007 taxation years. Only Question 3 has been updated to 2008 because the other answers would not change.) YORK UNIVERSITY MID-TERM EXAM #2 – FINAL CONTENT EXAM – SUMMER 2008 AK/ADMS 4561.03 INTRODUCTION TO PERSONAL INCOME TAX IN CANADA Number of Questions: 6 Number of Pages: 9 (please ensure you have all pages before you start) Time allowed: 3 hours ________________________________________________________________ Instructions (Please read before you start the test) : 1. A non-programmable calculator and the Exam Information Sheet provided at the exam can be used. (Fall 08 students: Please look on the course website) You are allowed to use your Income Tax Act during the exam. Highlighting, underlining and the use of tabs is allowed. However, nothing can be written in your Act or on the tabs and no other materials may be inserted in your Act. Use of unauthorized aids is considered to be a breach of the Senate Policy on Academic Honesty. Acts that contain unauthorized writing or materials will be confiscated during the exam and used as evidence. NO DICTIONARIES ARE ALLOWED. NO OTHER AIDS ARE ALLOWED. 2. Time allotments are provided for each question as suggestions only. 3. Only questions 4 and 5 require you to cite sections of the Income Tax Act. 4. Questions 1, 2 and 3 are to be answered in your solution booklet. Questions 4, 5 and 6 are to be answered on the exam paper. Only one solution booklet is allowed. The question paper must be handed in inside the solution booklet. 5. If you feel you require more information in a fact situation, outline the exact nature of the information CLEARLY and specify how it would affect your decision, but do not contradict facts or make unreasonable assumptions. 6. Please raise your hand if you have any questions during the exam. 7. The exam must be prepared in ink; otherwise it will not be remarked. ____________ ___________ _________ _________ 1
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LAST NAME FIRST NAME STUDENT # SECTION 2
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Question 1 (28 marks; suggested time 50 minutes) Ms. Wong is an accountant at a downtown accounting firm and a fairly avid investor. During 2007 she received a $120,000 salary. She also earned a bonus of $5,000 for the 2007 year, which was received on January 15, 2008. Ms. Wong also engaged in the following transactions. Assume that all of the properties are capital properties. In 2006, Ms. Wong sold a parcel of land for $300,000. Her adjusted cost base of the land was $100,000. The purchaser paid $75,000 of the purchase price in 2006 and a further $75,000 during 2007. The remaining $150,000 of the purchase price is due in three $50,000 installments, in each of 2008, 2009, and 2010. Ms. Wong claimed the maximum capital gains reserve available in 2006. During 2007, Ms. Wong sold both her Toronto home and Muskoka cottage.
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4561 final content exam with Q3 updated for 2008 - (Fall 08...

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