Answer Happy

Juan would like to invest in T-Bills. He plans to use the funds to start a business one year from now and wants to ensure the money is safe. Juan's objective is to ensure he obtains an effective annual yield that is equal to or greater than inflation. Juan is considering a $100,000 89-day T-Bill with a quoted yield of 2.4963% for $99,395. Inflation is predicted to be 2.50%. Calculate the effective yield of this T-Bill and determine if this will meet Juan's objective. A) Yes, as the effective yield is 2.5199%, which is more than the rate of Inflation B) No, as the effective yield is 2.4818%, which is less than the rate of inflation. O No, as the effective yield is 2.4963%, which is less than the rate of inflation. Dj Yes, as the effective yield is 2.5239%, which is more than the rate of Inflation

Lynda operates a profitable business as a sole proprietor. The business sells a depreciable asset (the only asset in its class) this year for $12,000. The asset was purchased for $10,000 and had an undepreciated capital cost of $7,000. How much will Lynda's net income for tax purposes increase as a result of this sale? OA) $5.000 B) $2,000 $2.500 D) $4,000

Listen Kathleen contributes 3% of her $45,000 of annual earnings into an RRSP. As part of her total remuneration package, Kathleen's employer matches her RRSP contribution and applies it to her RRSP. What tax impact, if any, will the employer's contribution to Kathleen's RRSP have on her income? A) No tax impact, as the benefit is considered non-taxable when paid by the employer. B) Kathleen will incur a taxable benefit of $2,700. C) Kathleen will incur a taxable benefit of $1,350. D) There is not sufficient information to calculate the tax consequences.

Brian owns a triplex (3-unit) apartment building as an Investment. Throughout the year, tenants occupied each of the three units. During the year, Brian added a garage at a total cost of $25,000, to allow indoor parking for each of the tenants. He also replaced all of the windows in one of the units at a cost of $15,000; painted two units for a cost of $3.000; replaced the carpets in one unit for a cost of $5,000, and spent $1,500 on weekly grass cutting and garden work. List all of the expenses that will be treated as current expenses? A) $1,500 spent on weekly grass cutting and gardening only. B) All of the items listed for a total of $49,500. $1,500 spent on weekly grass cutting and gardening PLUS $3,000 for the painting of two units PLUS $5,000 for the replacement of the carpets in on unit. D) $1,500 on weekly grass cutting and gardening PLUS $3,000 for the paintin of two units PLUS $15,000 for window replacements.