FP1 / Practice Exam 2
At the federal stage, when multiple person helps a child, who can declare the childcare expense
deduction?
A. The decrease income earner must declare the deduction, subject to a few exceptions.
B. The lower earnings earner have to continually declare the deduction, and not using a
exception.
C. The better earnings earner need to continually claim the deduction, and not using a
exception.
D. The deduction may be split between the 2 supporting individuals. - ANS-A. The lower
earnings earner ought to claim the deduction, challenge to some exceptions.
If multiple man or woman helps the child, the deduction need to be claimed by the person with
the lower quantity of net earnings, subject to some exceptions.
Bart works for ABC Company and is a member of the business enterprise's described
advantage 401-k. Where does the danger of a shortfall in the accrued 401-k relative to the
reserves needed to help the members' pensions lie?
A. Bart.
B. The ABC employer.
C. The provincial authorities.
D. The federal government. - ANS-B. The ABC corporation.
In a described advantage plan, the company is chargeable for funding shortfalls.
Based on the Fisher Equation, calculate the anticipated (real) fee of go back for a three-12
months GIC with an 4% interest price and an expected inflation charge of one.5% for the first yr.
Round your solution to 2 decimal places.
A. 1.04%.
B. 2.Forty six%.
C. 2.50%.
D. Four.0%. - ANS-B. 2.Forty six%.
The Fisher Equation is: (1 + actual fee) = (1 + nominal rate) / (1 + expected inflation charge).
Therefore, in this situation, the hazard might be calculated as: (1+real rate)=(1+.04)/(1+.1/2)
Giving you a final answer of 2.Forty six.
Bob earns $500 in dividends from his $five,000 commonplace share investment that he invested
in in place of a $5,000 bond funding that could have earned him $750. Calculate the monetary
value of Bob's proportion investment.
, A. $250.
B. $four,500.
C. $5,000.
D. $5,250. - ANS-C. $5,000.
The economic fee of his funding is the greenback quantity that represents the investor's
preliminary funding into the asset. Thus, Bob's financial value is $5,000.
Calculate the accounting charge of return on a stock buy of $5,250 that is offered on the quit of
one year for a benefit of $375. Round your solution to two decimal locations.
A. 6.38%.
B. 7.14%.
C. 7.Sixty nine%.
D. 9.30%. - ANS-B. 7.14%.
The accounting fee of go back is calculated as (internet gain or loss)/Initial investment x one
hundred. Therefore, in this situation, the return might be calculated as $375/5,250x100=7.14%.
Carlisle has requested his adviser for advice about drafting a Power of Attorney for his personal
property. He needs to employ his brother, however is worried that as his brother travels often for
commercial enterprise he may not be available at all times if wanted. Choose the advice that
Carlisle's adviser might make.
A. Contingent Power of Attorney.
B. Personal Care Power of Attorney.
C. Substitute Power of Attorney.
D. Power of Attorney for Property. - ANS-C. Substitute Power of Attorney.
A Substitute Power of Attorney is useful in which the attorney won't have the ability, or inclined,
to behave for any or all of the period. A substitute legal professional need to be named to keep
away from the prices and delays of applying to a courtroom to call a substitute.
Choose the accurate announcement regarding who can contribute to a Tax-Free Savings
Account (TFSA).
A. Canadian citizens under the age of sixty five.
B. Canadian citizens age 18 or older.
C. Non-residents over the age of 18.
D. Non-residents over the age of seventy one. - ANS-B. Canadian citizens age 18 or older.
Canadian citizens aged 18 or older may additionally make contributions to a TFSA; non-citizens
may not. There isn't any maximum age for contribution to a TFSA.
Choose the type of coverage that mixes time period and complete existence for a
predetermined contract duration and ensures a amount of cash for either the beneficiar(ies) or
at the end of the time period for the settlement holder.
At the federal stage, when multiple person helps a child, who can declare the childcare expense
deduction?
A. The decrease income earner must declare the deduction, subject to a few exceptions.
B. The lower earnings earner have to continually declare the deduction, and not using a
exception.
C. The better earnings earner need to continually claim the deduction, and not using a
exception.
D. The deduction may be split between the 2 supporting individuals. - ANS-A. The lower
earnings earner ought to claim the deduction, challenge to some exceptions.
If multiple man or woman helps the child, the deduction need to be claimed by the person with
the lower quantity of net earnings, subject to some exceptions.
Bart works for ABC Company and is a member of the business enterprise's described
advantage 401-k. Where does the danger of a shortfall in the accrued 401-k relative to the
reserves needed to help the members' pensions lie?
A. Bart.
B. The ABC employer.
C. The provincial authorities.
D. The federal government. - ANS-B. The ABC corporation.
In a described advantage plan, the company is chargeable for funding shortfalls.
Based on the Fisher Equation, calculate the anticipated (real) fee of go back for a three-12
months GIC with an 4% interest price and an expected inflation charge of one.5% for the first yr.
Round your solution to 2 decimal places.
A. 1.04%.
B. 2.Forty six%.
C. 2.50%.
D. Four.0%. - ANS-B. 2.Forty six%.
The Fisher Equation is: (1 + actual fee) = (1 + nominal rate) / (1 + expected inflation charge).
Therefore, in this situation, the hazard might be calculated as: (1+real rate)=(1+.04)/(1+.1/2)
Giving you a final answer of 2.Forty six.
Bob earns $500 in dividends from his $five,000 commonplace share investment that he invested
in in place of a $5,000 bond funding that could have earned him $750. Calculate the monetary
value of Bob's proportion investment.
, A. $250.
B. $four,500.
C. $5,000.
D. $5,250. - ANS-C. $5,000.
The economic fee of his funding is the greenback quantity that represents the investor's
preliminary funding into the asset. Thus, Bob's financial value is $5,000.
Calculate the accounting charge of return on a stock buy of $5,250 that is offered on the quit of
one year for a benefit of $375. Round your solution to two decimal locations.
A. 6.38%.
B. 7.14%.
C. 7.Sixty nine%.
D. 9.30%. - ANS-B. 7.14%.
The accounting fee of go back is calculated as (internet gain or loss)/Initial investment x one
hundred. Therefore, in this situation, the return might be calculated as $375/5,250x100=7.14%.
Carlisle has requested his adviser for advice about drafting a Power of Attorney for his personal
property. He needs to employ his brother, however is worried that as his brother travels often for
commercial enterprise he may not be available at all times if wanted. Choose the advice that
Carlisle's adviser might make.
A. Contingent Power of Attorney.
B. Personal Care Power of Attorney.
C. Substitute Power of Attorney.
D. Power of Attorney for Property. - ANS-C. Substitute Power of Attorney.
A Substitute Power of Attorney is useful in which the attorney won't have the ability, or inclined,
to behave for any or all of the period. A substitute legal professional need to be named to keep
away from the prices and delays of applying to a courtroom to call a substitute.
Choose the accurate announcement regarding who can contribute to a Tax-Free Savings
Account (TFSA).
A. Canadian citizens under the age of sixty five.
B. Canadian citizens age 18 or older.
C. Non-residents over the age of 18.
D. Non-residents over the age of seventy one. - ANS-B. Canadian citizens age 18 or older.
Canadian citizens aged 18 or older may additionally make contributions to a TFSA; non-citizens
may not. There isn't any maximum age for contribution to a TFSA.
Choose the type of coverage that mixes time period and complete existence for a
predetermined contract duration and ensures a amount of cash for either the beneficiar(ies) or
at the end of the time period for the settlement holder.
