ATax1Test2Nov08

ATax1Test2Nov08 - Question 1: (10 Marks) Answer the...

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Question 1: (10 Marks) Answer the following questions: a) Under what circumstances is an individual entitled to a home relocation loan deduction? How is the amount of the deduction calculated? b) Under what circumstances can a taxpayer deduct the ITA 118(1)(b) credit for an eligible dependant? c) What tax credits can be transferred from one spouse to the other spouse? (List three credits)
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d) Which of the following items result in tax credits? Circle the correct ones. Tuition Medical Automobile Expenses Home Office Expenses Employment Insurance payments Donations e) What is the age when an individual is eligible for the age tax credit?
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Question 2: (20 marks) Golden Dragon Ltd. begins operations in Vancouver on September 1, 2003. These operations include an elegant sit down restaurant specializing in northern Chinese cuisine, as well as a take out operation that provides home delivery throughout the city. To facilitate this latter operation, on October 12, 2003, the Company acquires 20 small cars to be used as delivery vehicles. The cost of these cars is $12,000 each and, for purposes of calculating CCA, they are classified as Class 10 assets. During the first year of operations, the Company establishes a fiscal year ending on
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ATax1Test2Nov08 - Question 1: (10 Marks) Answer the...

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