Fall 2010 MT 1 Q2 Marking Key

Fall 2010 MT 1 Q2 Marking Key - 10 49500 1 at 1/2 24750 0.5...

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Question 2 Marks Rental income before CCA 500 + 1500 1000 0.5 CCA Building 1 195000 x 4% = 7800 0.5 or CCA Building 2 185000 x 4% = 7400 Limit to income 1000 0.5 GIC interest 150000 x 1.5% 2250 0.5 Bond interest $200000 x 2.25% 4500 0.5 Bond interest paid on purchase 3501 0.5 3% Bond June interest 1500 0.5 3% Bond interest on sale 750 0.5 T bill 2500 1 Vacant land rental income 12000 0.5 Vacant land interest and property taxes 28000 0.5 Deduction limited to rental income 12000 0.5 16,000 interest & property taxes added to cost of land 0 0.5 T3 eligible dividends 2500 x 1.44 3600 1 T3 other income 500 0.5 UK dividend 3000 x 1.61 4830 1 CCPC dividend 75 x 100 x 1.25 9375 1 Stock dividend 100 x 20 x 1.44 2880 1 Share gift capital gain 50 x (1000
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Unformatted text preview: 10) 49500 1 at 1/2 24750 0.5 Niece dividend ‐ no attribution ‐ kiddie tax because minor 0.5 Nephew dividend ‐ no attribution ‐ gift and not minor 0.5 Tax prep fee ‐ 550 0.5 Safety deposit box ‐ 50 0.5 Business magazines not deductible 0.5 Share loan interest ‐ 10000 1 Car loan interest not deductible 0.5 Taxable income 43334 Tax on first 40970 6146 0.5 Balance at 22% 520 6666.08 0.5 Basic credit 10382 0.5 at 15% 1557 0.5 T3 eligible dividend tax credit 1100 x 10/17 647 1 Foreign tax credit 300 x 1.61 483 1 CCPC dividend tax credit 1875 x 2/3 1250 1 Stock dividend tax credit 880 x 10/17 518 ‐ 4455 1 23 Max 22...
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This note was uploaded on 03/24/2012 for the course ADMS 4561 taught by Professor Josephfrankovic during the Fall '10 term at York University.

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