Canadian Income Taxation, , 26e Bill Buckwold TB

Student name:__________ 1) Income tax is calculated for which of the following jurisdictional groups? A) Provincial, federal, and foreign B) Municipal, provincial, and federal C) Municipal, federal, and foreign D) Municipal, provincial, and foreign Question Details Accessibility : Keyboard Navigation Bloom's : Understand Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-05 Income tax is calculated for which of the fo... 2) Simone is an employee at XYZ Ltd. and is in a 45% tax bracket. XYZ Ltd. has a tax rate of 27%. The company has offered Simone a 10% pay raise. Simone's current salary is $50,000. What is after-tax value of the raise to Simone? A) $5,000 B) $2,750 C) $1,350 D) $2,250 Question Details Accessibility : Keyboard Navigation Bloom's : Apply Topic : 01-03 Cash Flow after Tax Source : Chapter 01 Test Bank > TB 01-13 Simone is an employee at XYZ Ltd. and is in... Version 1 2 3) Logan holds a 7% interest-bearing debt instrument in Glow Co. Glow Co.'s tax rate is 27%, and Logan is in a 45% tax bracket. Which of the following statements is correct? A) The after-tax cost of the debt instrument is 5.11% to Glow Co., and the after-tax value to Logan is 3.15%. B) The after-tax cost of the debt instrument is 7% to Glow Co., and the after-tax value to Logan is 7%. C) The after-tax cost of the debt instrument is 1.89% to Glow Co., and the after-tax value to Logan is 3.15%. D) The after-tax cost of the debt instrument is 5.11% to Glow Co., and the after-tax value to Logan is 3.85%. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Topic : 01-03 Cash Flow after Tax Source : Chapter 01 Test Bank > TB 01-08 Logan holds a 7... 4) Blake holds a 5% interest-bearing debt instrument in Day Co. Day Co.'s tax rate is 27%, and Blake is in a 50% tax bracket. Required: A) Calculate the after-tax cost (as a percentage) of the debt-instrument to Day Co. B) Calculate the after-tax value (as a percentage) of Blake's interest income. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Topic : 01-03 Cash Flow after Tax Source : Chapter 01 Test Bank > TB 01-20 Blake holds a 5... Version 1 3 5) Which of the following statements is true? A) Cash flow should never be calculated on an after-tax basis. B) Income tax cannot be treated as a controllable cost. C) The value of an enterprise should be based on pre-tax cash flow. D) The tax cost to a business should be regarded as a cost of doing business. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Topic : 01-02 Taxation - A Controllable Cost Topic : 01-03 Cash Flow after Tax Source : Chapter 01 Test Bank > TB 01-07 Which of the following statements is true? 6) Which of the following is not considered to be a separate entity for tax purposes in Canada? A) A trust B) A proprietorship C) A corporation D) An individual Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-01 Which of the following is not considered to ... 7) The Canadian income tax system for individuals is considered A) unfair. B) progressive. C) flat. D) regressive. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-16 The Canadian income tax system for... Version 1 4 8) Which of the following is not a separate entity for tax purposes? A) Corporation B) Trust C) Individual D) Partnership Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-15 Which of the following is not a... 9) What is the most significant form of taxation that affects return on investment? A) Excise Taxes B) Property Taxes C) Income Taxes Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-01 Taxation and the Financial Process Source : Chapter 01 Test Bank > TB 01-17 What is the most significant form of... 10) QWERTY Co. decides to give a 6% raise to its employee Jean, who is currently in the 40% tax bracket. The company is in the 27% tax bracket. What is the after-tax implication for each of the parties in this transaction? A) The company has a net after-tax cost of 4.38% and Jean has an after-tax income of 3.6%. B) Both Jean and the company have a 3% after-tax cost/benefit. C) Both the company and Jean have an after-tax cost of 4.38%. D) We should only consider the pre-tax amount of 6% to each party. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Topic : 01-03 Cash Flow after Tax Source : Chapter 01 Test Bank > TB 01-18 QWERTY Co. decides to give a... Version 1 5 11) Which of the following lists accurately names the five general income categories for tax purposes? A) Business, Property, Employment, Investments, Other B) Business, Property, Employment, Capital Gains, Other C) Business, Interest, Employment, Capital Gains, Other D) Business, Property, Employment, Capital Gains, Foreign Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-09 Which of the following lists accurately name... 12) Which of the following statements regarding taxation within jurisdictions in Canada is true? A) Only federal taxes apply to individuals while both federal and provincial or territorial taxes apply to corporations. B) Only federal taxes apply to corporations while both federal and provincial taxes apply to individuals. C) Federal and provincial or territorial tax brackets are always identical to one another. D) Both federal and provincial or territorial taxes apply to Canadian taxpayers. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-11 Which of the following statements regarding ... 13) All cash flow must be considered on an after-tax basis because A) companies want a positive cash flow. B) the value to a business must be considered. C) the investor's tax rate is irrelevant. D) decisions that appear favourable on a pre-tax basis may be unfavorable or marginally favourable on an after- tax basis. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Topic : 01-03 Cash Flow after Tax Source : Chapter 01 Test Bank > TB 01-14 All cash flow must be considered on an after... Version 1 6 14) Two investor corporations may not enter jointly into which of the following? A) Separate corporation B) Partnership C) Proprietorship D) Joint venture Question Details Accessibility : Keyboard Navigation Bloom's : Remember Topic : 01-04 The Fundamental Income Tax Structure and Its Complexity Source : Chapter 01 Test Bank > TB 01-06 Two inves