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Applied Financial Planning Certification Exam 1 (AFP) Questions and Answers
A client borrows $100,000 to invest in a non-registered portfolio expected to generate interest and dividend income. What tax principle is most relevant?
Barbara, age 50, is meeting with her financial planner, Clark. Barbara has been hired as the Chief Executive Officer of a very successful privately owned business. Her salary will be $200,000 annually, plus a bonus. Which retirement savings option should Clark recommend for Barbara?
Jonah is meeting with his client, Muhsina, who owns Myke Inc., a Canadian-controlled private corporation. Based on current market value, if he decides to sell Myke Inc., Muhsina will have a capital gain of $400.000. He expects the value of Myke Inc. to increase in future years and has a CNIL balance of $100,000. He wants the future increase in value to be taxed in the hands of his children, Teshi and Kaliyah, and to minimize the cost. What action should Jonah advise Muhsina to take to meet his goal?
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