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# Q2 - 1 Capital gain 110,000-104,600 = 5,400 reserve 1...

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Question 2 Marks Rent before CCA (10,000-8,500) + (15,000-\$16,000) 500 1 CCA 4% of 150,000, 1 but limited to 500 -500 1 Debt instruments (a) 100,000 GIC at 3% 3,000 1 (b) 2,000 interest received 2,000 1 minus \$1,000 interest paid on purchase -1,000 1 (d) t-bill no anniversary date in 09 nil 1 mark for explanation employer loan Imputed interest 3% x 3/12 (or 92/365) x 50,000 375 1 mark given if 378 i.e. used 92/365 80.5 imputed interest deduction: 1/2 x imputed interest amount -187.5 1 no deducton for other half, non-income earning purpose 1 for explanation Vacant land rent 2,000 1 interest and property taxes -2,000 1 rest of expenses added to cost of land (5,000 + 1,600) - 2,000 = 4,600, so cost is 104,600

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Unformatted text preview: 1 Capital gain: 110,000-104,600 = 5,400 - reserve: 1 lesser of 1/2 x 5,400, and 1 4/5 x 5,400 1 lesser amount is 2700 TCG 1/2 x (5,400-2,700) 1,350 1 money to niece nil Kiddie tax applies, no attribution 1 for explantion Pubco shares Stock dividend 30 x 25 = 750 1 x1.45 1,087.50 1 total cost of shares 20,000 + 750 1 CG / TCG: 20,750 - (30 x 1030) = 10,150 0.5 TCG x .5 5,075.00 0.5 900 interest expense paid to CRA expressly not deductible nil 1 mark for explanation UK company dividend 3,000 1 no mark if put 2,700 24 total marks 5...
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