Free AFP-Exam-1 Mock Exam – Practice Online Confidently

Which asset is most likely to flow through a deceased person’s estate rather than pass automatically outside the estate?

Owen and Lina are looking to purchase a home in the next few months. Owen is the primary income earnerfor the family. His credit history is weak with several recently paid collections Lina has a perfect credit recordbut limited income and irregular employment. What will their financial planner advise them about the impacttheir credit ratings will have on their ability to secure a mortgage?

Ivan has been relocated to a new office by his employer and is considering moving to a home closer to hisnew workplace. What is the minimum distance Ivan will have to move in order to qualify for the work-relatedmoving expenses income tax deduction?

Clara invested $150,000 with Roper Counsel, a member of CIRO. Her portfolio consists entirely of Canadianmutual funds. Roper Counsel recently became insolvent and declared bankruptcy. Where can Clara seek helpto recover her financial losses due to this event?

Henry, age 48, has been working for Bac Inc, which is a federally regulated corporation, for over eight years.He is looking to retire at age 50 and has decided to take the commuted value of his pension: $450,000,electing to transfer the eligible remainder to his RRSP (Income Tax Act maximum pension benefit transfervalue of $210,000). Henry estimates he would need $1,800 (pre-tax every month) from his registeredinvestments to meet his retirement income goal and is looking to maximize his RRSP contribution room.Assume no inflation, an average tax rate of 15%, an unused RRSP contribution room of $90,000, and a lifeexpectancy to age 90. What would be the required rate of return to meet Henry's goals?