Image (7) - Reserve for delayed payment for 2007 was...

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Unformatted text preview: Reserve for delayed payment for 2007 was $20,000, In 2008 the 2nd year of the instalment sale, 10% of the deferred sale was collected. If the gross profit was $40,000 on the instalment sale in year 1, what was the reserve balance at the end ofyearZ? a) $20,000 b) $ 4,000 \/ © $16,000 d) 0 ' If another 10% 0f the deferred sales was collected in 2010, and nothing was collected in 2009, what is the reserve balance at the end of year 4: a) $12,000 b) $ 4,000 c) $16,000 Q 0 Dividends received from a Canadian controlled private corporation from business income that is not eligible for the small business deduction, is gross-upped by 145% and the dividend tax credit (federal and provincial) is approximately 20% combined. True Fa e / 1 2 The taxpayer’s principal business is building homes. He purchases land costing $100,000, and he incurred $15,000 in interest costs and $5,000 in property taxes. The interest and property taxes are fully deductible. [ T e False 1 2 Fred’s company provided extensive retirement counselling service at a luxurious spa in the Bahamas for a 1 week period. The cost the package to the company was $4,000. None of the amount is a taxable benefit to Fred. ' : False X 2 , An amount received by a former employee in lawsuit instituted for damages, after the employer harassed the employee into quitting is considered be a retirement allowance and is fully taxable. True / Fals 1 2 ...
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