Canadian Income Taxation (2023-
m m m
2024) 25e William Buckwold, Joan Kitunen,
m mm m m m m
Matthew Roman (Test Bank)
mm m m
(Testbank all chapters)
m m
(Verified Answers at the end of each chapter)
m m m m m m m
CANADIAN INCOME m mm
TAXATION TEST BA m mm
NK 2023/2024 BEST G
m mm m
UIDE
,CHAPTER 1 m
1) Whichmof mthemfollowingmismnot mconsidered mtombemamseparatementitymformtaxmpurposes
minmCanada?
A) Anmindividual
B) Amproprietorship
C) Amcorporation
D) A mtrust
2) Whichmof mthemfollowingmattitudesmand mactionsmismmost mlikelymtomhelpmdecision-
makersmdevelopmanmefficient mapproachmtomtaxation?
A) Cashmflowsmshould mbemconsidered mfrommambefore-
taxmperspectivemwhenmmakingmdecisions.
B) Functionalmmanagersmshould mnot mbemheld mresponsiblemformthemtaxmeffectsmof mdecisio
nsmwithinmtheirmdivisions.
C) Taxmcostsmtomambusinessmshould mbemregarded masmcontrollablemexpenses,mmuchmli
kemproduct mcostsmand msellingmcosts.
D) Allmmanagersmshould mownmamcopymof mthemIncomemTaxmAct.
3) Whichmof mthemfollowingmstatementsmismtrue?
A) Dividendsmpaid mbymamcorporationmaremdeductiblembymthat mcorporationmand maremamform
mof mpropertymincomemformthemrecipient.
B) Dividendsmpaid mbymamcorporationmaremdeductiblembymthat mcorporationmand maremamform
mof mbusinessmincomemformthemrecipient.
C) Dividendsmpaid mbymamcorporationmaremnot mdeductiblembymthat mcorporationmand maremamfo
rmmof mbusinessmincomemformthemrecipient.
D) Dividendsmpaid mbymamcorporationmaremnot mdeductiblembymthat mcorporationmand maremamfo
rmmof mpropertymincomemformthemrecipient.
1
,4) Whenmassessingmthemvaluemof mamcorporation,mthemmost mrelevant minformationmthat mdecisio
n-mmakersmnormallymconsidermis
A) thempotentialmformbefore-taxmprofits.
B) thempotentialmformafter-taxmprofits.
C) themcurrent mcorporatemtaxmrate.
D) cashmflow mbefore-tax.
5) Twominvestormcorporationsmmaymnot mentermjointlymintomwhichmof mthemfollowing?
A) Joint mventure
B) Partnership
C) Separatemcorporation
D) Proprietorship
6) Incomemtaxmismcalculated mformwhichmof mthemfollowingmjurisdictionalmgroups?
A) Municipal,mprovincial,mand mfederal
B) Municipal,mfederal,mand mforeign
C) Provincial,mfederal,mand mforeign
D) Municipal,mprovincial,mand mforeign
7) Whichmof mthemfollowingmstatementsmismtrue?
2
, A) Cashmflow mshould mnevermbemcalculated monmanmafter-taxmbasis.
B) Themtaxmcost mtomambusinessmshould mbemregarded masmamcost mof mdoingmbusiness.
C) Incomemtaxmcannot mbemtreated masmamcontrollablemcost.
D) Themvaluemof manmenterprisemshould mbembased monmpre-taxmcashmflow.
8) Loganmholdsmam7%minterest-
bearingmdebt minstrument minmGlow mCo.mGlow mCo.'smtaxmratemism27%,mand mLoganmisminmam45%mta
xmbracket.mWhichmof mthemfollowingmstatementsmismcorrect?
A) Themafter-taxmcost mof mthemdebt minstrument mism5.11%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism3.85%.
B) Themafter-taxmcost mof mthemdebt minstrument mism5.11%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism3.15%.
C) Themafter-taxmcost mof mthemdebt minstrument mism1.89%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism3.15%.
D) Themafter-taxmcost mof mthemdebt minstrument mism7%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism7%.
9) Whichmof mthemfollowingmlistsmaccuratelymnamesmthemfivemgeneralmincomemcategoriesmformt
axmpurposes?
A) Business,mInterest,mEmployment,mCapitalmGains,mOther
B) Business,mProperty,mEmployment,mCapitalmGains,mForeign
C) Business,mProperty,mEmployment,mCapitalmGains,mOther
D) Business,mProperty,mEmployment,mInvestments,mOther
10) Proprietorships,mcorporations,mpartnerships,mlimited mpartnerships,mjoint mventures,man
d mincomemtrustsmaremall
3
m m m
2024) 25e William Buckwold, Joan Kitunen,
m mm m m m m
Matthew Roman (Test Bank)
mm m m
(Testbank all chapters)
m m
(Verified Answers at the end of each chapter)
m m m m m m m
CANADIAN INCOME m mm
TAXATION TEST BA m mm
NK 2023/2024 BEST G
m mm m
UIDE
,CHAPTER 1 m
1) Whichmof mthemfollowingmismnot mconsidered mtombemamseparatementitymformtaxmpurposes
minmCanada?
A) Anmindividual
B) Amproprietorship
C) Amcorporation
D) A mtrust
2) Whichmof mthemfollowingmattitudesmand mactionsmismmost mlikelymtomhelpmdecision-
makersmdevelopmanmefficient mapproachmtomtaxation?
A) Cashmflowsmshould mbemconsidered mfrommambefore-
taxmperspectivemwhenmmakingmdecisions.
B) Functionalmmanagersmshould mnot mbemheld mresponsiblemformthemtaxmeffectsmof mdecisio
nsmwithinmtheirmdivisions.
C) Taxmcostsmtomambusinessmshould mbemregarded masmcontrollablemexpenses,mmuchmli
kemproduct mcostsmand msellingmcosts.
D) Allmmanagersmshould mownmamcopymof mthemIncomemTaxmAct.
3) Whichmof mthemfollowingmstatementsmismtrue?
A) Dividendsmpaid mbymamcorporationmaremdeductiblembymthat mcorporationmand maremamform
mof mpropertymincomemformthemrecipient.
B) Dividendsmpaid mbymamcorporationmaremdeductiblembymthat mcorporationmand maremamform
mof mbusinessmincomemformthemrecipient.
C) Dividendsmpaid mbymamcorporationmaremnot mdeductiblembymthat mcorporationmand maremamfo
rmmof mbusinessmincomemformthemrecipient.
D) Dividendsmpaid mbymamcorporationmaremnot mdeductiblembymthat mcorporationmand maremamfo
rmmof mpropertymincomemformthemrecipient.
1
,4) Whenmassessingmthemvaluemof mamcorporation,mthemmost mrelevant minformationmthat mdecisio
n-mmakersmnormallymconsidermis
A) thempotentialmformbefore-taxmprofits.
B) thempotentialmformafter-taxmprofits.
C) themcurrent mcorporatemtaxmrate.
D) cashmflow mbefore-tax.
5) Twominvestormcorporationsmmaymnot mentermjointlymintomwhichmof mthemfollowing?
A) Joint mventure
B) Partnership
C) Separatemcorporation
D) Proprietorship
6) Incomemtaxmismcalculated mformwhichmof mthemfollowingmjurisdictionalmgroups?
A) Municipal,mprovincial,mand mfederal
B) Municipal,mfederal,mand mforeign
C) Provincial,mfederal,mand mforeign
D) Municipal,mprovincial,mand mforeign
7) Whichmof mthemfollowingmstatementsmismtrue?
2
, A) Cashmflow mshould mnevermbemcalculated monmanmafter-taxmbasis.
B) Themtaxmcost mtomambusinessmshould mbemregarded masmamcost mof mdoingmbusiness.
C) Incomemtaxmcannot mbemtreated masmamcontrollablemcost.
D) Themvaluemof manmenterprisemshould mbembased monmpre-taxmcashmflow.
8) Loganmholdsmam7%minterest-
bearingmdebt minstrument minmGlow mCo.mGlow mCo.'smtaxmratemism27%,mand mLoganmisminmam45%mta
xmbracket.mWhichmof mthemfollowingmstatementsmismcorrect?
A) Themafter-taxmcost mof mthemdebt minstrument mism5.11%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism3.85%.
B) Themafter-taxmcost mof mthemdebt minstrument mism5.11%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism3.15%.
C) Themafter-taxmcost mof mthemdebt minstrument mism1.89%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism3.15%.
D) Themafter-taxmcost mof mthemdebt minstrument mism7%mtomGlow mCo.,mand mthemafter-
taxmvaluemtomLoganmism7%.
9) Whichmof mthemfollowingmlistsmaccuratelymnamesmthemfivemgeneralmincomemcategoriesmformt
axmpurposes?
A) Business,mInterest,mEmployment,mCapitalmGains,mOther
B) Business,mProperty,mEmployment,mCapitalmGains,mForeign
C) Business,mProperty,mEmployment,mCapitalmGains,mOther
D) Business,mProperty,mEmployment,mInvestments,mOther
10) Proprietorships,mcorporations,mpartnerships,mlimited mpartnerships,mjoint mventures,man
d mincomemtrustsmaremall
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