Sample Examination Questions and Solutions

Note to Instructors

This booklet (and the accompanying DVD) contains a series of 94 questions and solutions and
six sets of multiple choice questions with annotated solutions that, in total, cover the entire text.
The comprehensive coverage of these materials has been possible by additions to the authors’
work by a contributor, Thomas Haddrath, CMA, who is an instructor in the Rotman Commerce
Program and the School of Continuing Studies Program at the University of Toronto, and who has
also completed the CICA In-depth Tax Course. He has updated past exam questions that were
previously published in the Sample Exams Booklet and he has provided annotated solutions for
the multiple choice question sets. For this edition, he has added 31 new multiple choice questions
covering Chapters 2 to 8. We are most appreciative of his conscientious efforts in improving the
booklet. The contents of the booklet allow more choice of questions when making up your exams.

Each question indicates how many minutes should be allocated for its completion. The minutes
are provided instead of the marks to take into account the fact that not all of your examinations
are of the same length.

The addition of the number of marks available can be made easily once the length of the
examination is determined. As well, in order to allow you to easily choose the question most
relevant to the material to be examined, the chapter, or chapters, in the text to which each
question relates is indicated.

All of the examination questions were designed to be written under the following set of common
instructions, which appear on the first page of an examination. Note that one copy of the Income
Tax Act with very limited annotation is permitted. This brings the reference material in line with
the uniform exams for Chartered Accountants. Our marking keys provide for about a 10%
overmark margin, with variations depending on the nature of the question. A higher overmark
margin is allowed on a case-type question than on a computation-type question.

Instructions:

One copy of the Income Tax Act is permitted. The Act may not be written in (annotated),
nor may additional pages be inserted. However, underlining, highlighting and tabbing of
sections are permitted. Tabs must be a maximum of 1.25 cm by 4 cm, labelled with
section numbers and/or titles only. Use of a calculating device is also permitted.

Time allotments are provided at the beginning of each question as a guide to ensure that
you spend the appropriate amount of time on each question. Do not exceed these times.

Do not cite sections of the Act unless specifically required.