Multiple Choice Exam Questions ( Q1 to Q139)
1) Tybee lives in Detroit, Michigan, USA. She commutes daily to Waterloo, Ontario,
Canada, where she is employed by Ford Motor Company of Canada Limited. She works 9
am to
...
Multiple Choice Exam Questions ( Q1 to Q139)
1) Tybee lives in Detroit, Michigan, USA. She commutes daily to Waterloo, Ontario,
Canada, where she is employed by Ford Motor Company of Canada Limited. She works 9
am to 5 pm, Monday through Friday. Which one of the following best indicates Tybee’s
residency status for Canadian income tax purposes for 2023?
(a) A full-time resident
(b) A part-year resident
(c) A non-resident
(d) A deemed resident (sojourner)
2) XYZ Inc. provides Samantha Davis with a company car. The car is leased for $800/month
(including 13% HST and excluding insurance) and was made available to her for
ten months. ABC pays all of the operating costs which amounted to $3,500 in 2023.
Samantha drove 13,000 kilometres in 2023 of which 8,000 were for business. What is the
minimum taxable benefit that Samantha must include on her 2023 personal tax return?
(a) $3,250 rounded
(b) $2,400 rounded
(c) $6,983rounded
(d) $8,000 rounded
3) Which of the following is a taxable benefit?
(a) A cash Christmas gift to an employee from the employer valued at $450.
(b) Payment of the tuition for an employee completing a degree that will benefit the
employer.
(c) A 20% discount on the employer’s merchandise, available to all employees.
(d) Subsidized meals offered to all employees of the company assuming the price is
approximately equal to the cost.
4) Hulk Protein Supplements Ltd. is a CCPC. Bruce Lily, one of the employees, was granted
a stock option on October 11, 2015 for 10,000 shares at $3 per share. Bruce exercised the
stock option on September 30, 2018 when the market price was $6 per share. In
February 2023, Bruce purchased a new home and sold the shares for $7 each. The fair
market value on October 11, 2015 was $4. What is the effect of the above on Bruce’s
income for tax purposes, assuming Bruce wants to minimize taxes?
(a) $15,000 in 2018
(b) $20,000 in 2023
(c) $30,000 in 2018
(d) $35,000 in 2023
[Show More]