Final%20Exam%28Apr%202008%29%20-%20question0

Final%20Exam%28Apr%202008%29%20-%20question0 - STUDENT NAME...

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STUDENT NAME__________________________ STUDENT #:______________________________ Sauder School of Business THE UNIVERSITY OF BRITISH COLUMBIA Commerce 355 / Business 355 Introduction to Income Tax Final Examination QUESTION BOOKLET April 24 th , 2008 Instructor: Tran Chung Total Marks: 45 Time: 180 minutes This QUESTION BOOKLET consists of 9 pages including this cover page. Financial calculators can be used during this examination. Allocate your time carefully and clearly explain your analysis. The Income Tax Act is permitted to be used during exam (tabbed with name of provision, underlined, or highlighted, but no other notations or writings). Assume all persons are Canadian resident unless specifically stated otherwise. You CANNOT ask any questions during the exam. If there are any omissions or errors, please state them clearly and make the appropriate assumptions that you feel are necessary to complete the answer. Please provide your answers in the ANSWERS BOOKLET 1
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Part One: Multiple Choice (10 questions, 1 mark each – TOTAL 10 marks) Answer the Multiple Choice Questions in the Answer Booklet. 1. After taking Comm 355/Busi 355, I still think that tax is very intimidating. A. True B. False 2. Ella Vader presents the following information with her 2007 tax return: Capital Gains: Shares $1,500 Personal-use property 750 Listed personal property 600 Capital losses: Shares $820 Personal use property 1,100 Listed personal property 240 Listed personal property losses of prior years 105 Net capital losses from 2005 310 What is the minimum taxable capital gain (rounded to the nearest dollar) to be reported on Ella’s tax return? A. $533 B. $843 C. $1,264 D. $1,000 3. A business has $5,000 in Taxable Income before CCA in the current year. Management anticipates a high income for the subsequent year. The maximum CCA deductible for the year in Class 8 is $5,000 and the maximum CCA deductible for the year in Class 12 is $5,000. To minimize the subsequent year’s taxes, the business should: 2
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4. Meg Yermindup sold her cottage for $130,000 in May 2007. The cottage cost her $50,000 in 2000 and can qualify as a principal residence. The only other principal residence that Meg has owned during her lifetime was her Vancouver home, which she owned from 1996 to 2006. Even though she sold the Vancouver home for $200,000 more than its cost, she did not report the gain in her 2006 tax return because she designated it as her principal residence. What is the minimum taxable capital gain that Meg must report on her 2007 tax return in respect of the sale of the cottage?
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  • Winter '10
  • TranCheung
  • Taxation in the United States, .........

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