Quiz 2

1. An individual died in June 2022. Their estate has a December 31st year-end. As instructed by the
will, the estate donated property to a charity in February 2023. The estate cannot allocate the
donation to
Multiple Choice
 the 2020 taxation year of the deceased.
 the 2023 taxation year of the estate.
 the 2022 taxation year of the estate.
 the 2021 taxation year of the deceased.

2. Which of the following types of corporate income are subject to the special refundable tax of 10
2/3% and a tax reduction of 30 2/3% upon distribution of the income to shareholders?
Multiple Choice
 Business income and net property income
 Specified investment business income and dividend income
 Specified investment business income and taxable capital gains
 Dividend income and net taxable capital gains

3. The General Rate Income Pool account accumulates the after-tax earnings that can be paid as
Multiple Choice
 non-eligible dividends.
 eligible dividends.
 capital dividends.
 exempt dividends.

4. Kat Co. (a CCPC) reported a net income for tax purposes of $800,000 in Year 1. In Year 1, Kat
Co. made a contribution of $25,000 to eligible charities and received $30,000 in non-eligible
dividends from a connected taxable Canadian corporation. What is Kat Co.'s taxable income in
Year 1?
Multiple Choice
 $745,000
 $770,000
 $775,000
 $800,000