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MC-Class-Other I&amp;D

# MC-Class-Other I&amp;D - MULTIPLE CHOICE OTHER INCOME...

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MULTIPLE CHOICE OTHER INCOME AND DEDUCTIONS 1. Mr. X’s only income is an RRSP withdrawal payment of \$18,000. His wife’s employment income was \$48,000. Their available child care deduction can be claimed: (a) all by Mr. X (b) all by Mrs. X (c) one-half by Mr. X and one-half by Mrs. X (d) by neither Mr. nor Mrs. X (e) none of the above 2. A taxpayer paid \$750 to an agency to find a replacement for a nanny who left her employment. Assuming the weekly amounts paid to the nannies are within the annual deduction limitation, the taxpayer can deduct as child care expenses: (a) only the weekly amounts paid to the nannies (b) the weekly amounts, plus the \$750 (c) only the \$750 (d) nothing, as nanny fees are not eligible (e) none of the above 3. Mrs. Simpson received a \$20,000 death benefit from her late husband’s former employer. In addition, she had employment income of \$38,000. Her total income for tax purposes is: (a) \$58,000 (b) \$48,000 (c) \$38,000 (d) \$20,000 (e) none of the above 4. Following Max’s death, his former employer paid a \$12,000 death benefit to his wife and a \$5,000 death benefit to each of his two children. How are these amounts reported? (a) \$12,000 by his wife and \$5,000 by each child (b) \$2,000 by his wife and nothing by his children (c) \$2,000 by his wife and \$5,000 by each child (d) \$12,000 by his wife and nothing by each child (e) none of the above

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5. Following Ned’s death, his former employer paid a \$6,000 death benefit to his wife and \$2,000 to each of his two children. How are these amounts reported? (a) \$6,000 by his wife and \$2,000 by each child (b) nothing by the wife or the children (c) \$6,000 by his wife and nothing by the children (d) nothing by his wife and \$2,000 by each child (e) none of the above 6. Catherine is an elected member of a provincial legislature. In addition to income of \$56,000 as a school teacher, she received \$30,000 income and a \$10,000 expense allowance from the legislature. Her net office and
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MC-Class-Other I&amp;D - MULTIPLE CHOICE OTHER INCOME...

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