Answer Happy

Christine owns a small business. She disposed of depreciable capital property for $14,000. The Undepreciated Capital Cost (UCC) balance for the property was $10,000. The Adjusted Cost Base (ACB) for the property was $15,000. What are the ax Implications of the disposition of the property? DA) Christine has taxable income of $4,000 and a UCC balance of $0. PB) Christine has a capital loss of $1,000 and a UCC balance of $0. PC) Christine has a capital gain of $4,000 and a UCC balance of $4,000. D) Christine has a capital loss of $1,000 and a UCC balance of $4,000.

Ken has decided to purchase a Save Inc. bond with a face value of $15,000 and eight years remaining until maturity. The coupon rate is 6.15%, while the current market rate is 3.85%. What price should Ken pay for the Sove Inc. bond? A) $17,356.13 OB) $17,337.25 O $17,47741 D) $14,21245

In 2016, Gina's employer granted her 2.000 options to buy common shares of the firm. The options had an exercise price of $5 each and were issued at a time when the shares were worth $5 each. In 2017, Gina exercises her right to buy 2,000 shares by paying $10,000 to her employer while the shares had an actual market value of $15 each. In 2018, Gina sells her shares on the open market for $50 each. What is Gina's capital gain, if any, relative to the 2018 taxation year? Assume Gina operates at arm's length from her employer, she does not file any elections and the calculation is made under the basic rules A) A capital gain of $100,000 B) No capital gain. O A capital gain of $30,000. OD) A capital gain of $70,000.

Gilbert borrowed $100,000 from his employer on April 19 of last year. He agreed to pay interest using a variable interest rate. Any changes to the Interest rate would mimic any changes to the prime interest rate that his employer's bank uses. When his loan started, Gilbert's interest rate was 1.50%. The prescribed Interest rates for the year were as follows: 1.75% for the first quarter, 2.00% for the second quarter, 200% for the third quarter and 2.25% for the fourth quarter. Additionally, the prime Interest rate at his employer's bank Increased by 0.25% on October 1. How much was Gilbert's taxable benefit for last year? O A $413.70 B) $473.97 $350.68 D) $536.99

Which of the following statements describe a primary shortfall of the dividend discount model (DOM)? OA It looks at the risk associated with the investment portfolio as a whole and is not useful for individual stocks. B) It focuses on the expected return of a single stock rather than the stock as part of a larger portfolio The interest rate assumptions are too conservative. D) It compares the intrinsic value of the stock with its current market price.

Barney owns 6000 shares of UwSee Inc., a publically traded company. He purchased 2000 shares 5 years ago at $12 per share, then he bought another 3000 shares 3 years ago at $17/share and, most recently, just added another 1000 shares at $21 each about 6 months ago. Barney does not pay any trading commission to buy or sells shares through his brokerage account. The current market value is $25 per share. Barney seils 2500 of the shares today, what is his taxable capital gain? OA) $15,000 OB) $11,250 D$8.000 DD) $16,000

Jim who earns a net income for tax purposes of $103.487 and Donna, who earns a net Income for tax purposes of $89,589 per year, both contribute towards supporting their child. At the federal level, given the details provided, who can claim the childcare expense deduction? OA) . A) Donna must always claim the deduction, with no exception OB B) Jim must always claim the deduction, with no exception The deduction can be split between Jim and Donna D) Donna must claim the deduction, subject to some exceptions.