2014

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pdat

e This update is designed to assist instructors by providing information on the changes to the upcoming edition of Federal Income Taxation: Fundamentals.

Content changesThe following is a summary of the significant changes to the content of the upcoming edition of Federal Income Taxation: Fundamentals. This summary is designed to assist you in preparing the annual update to your course outline.

Legislation Update

The 7th edition of the book has been updated to include proposed and enacted (Bill C-31 received Royal Assent on June 19, 2014) legislation up to and including that resulting from the February 2014 federal Budget.

Textbook

All Review Questions, Multiple Choice Questions, Exercises, and Assignment Problems have been removed from the textbook and inserted in the Study Guide. Also, all Supple-mental Notes have been removed from each chapter, except for those found in Chapter 7, which remain for the 7th edition of the textbook.

Study Guide

All Review Questions, Multiple Choice Questions, Exercises, and Assignment Problems have been removed from the textbook and inserted in the Study Guide. All solutions to the Review Questions, Multiple Choice Questions, and Exercises remain in the Study Guide. In addition, all Assignment Problems now fall under one of three categories: Type 1, Type 2, or Type 3.

Solutions ManualThe same categorization of the Assignment Problems that appear in the Study Guide are also present in the Solutions Manual. A DVD with PowerPoint slides will again be included with the Solutions Manual to enhance lecture materials. These slides have been classroom tested, and may be posted to a course website or made available to the students by other means.

Federal Income Taxation: Fundamentals, 7th Edition

Summary of Changes

Summer 2014

Changes to ParagraphsNew paragraphs have been added at ¶10,228; 19,600; and 19,750. The following paragraphs have been removed: ¶1,045; 1,120; 1,121; 1,122; 1,123; 1,124; 1,445; 3,280; 3,288; 3,354; 3,356; 3,358; 3,360; 3,364; 3,366; 3,368; 3,370; 3,372; 4,235; 4,900; 7,380; 10,015.35; 10,045; 10,045.10; 10,045.20; 10,045.30; 10,065; 10,066; 11,030; 11,035; 11,040; and 12,265.

• Chapter 4: ¶4,060 now encompasses the first two paragraphs only; the remaining text paragraphs now fall under new heading 4,062 Deferral Anti- avoidance.

• Chapter 5: ¶5,320—Half the paragraph has been removed. ¶5,320—A good portion of the paragraph has been removed.

• Chapter 6: ¶6,265—The heading has been changed to “Interest”.

• Chapter 7: ¶7,030—A good portion of the paragraph has been removed and changed.

• Chapter 9: ¶9,140—“Proposed” has been removed from the heading.

• Chapter 10: ¶10,061—The heading has been removed so that the content now falls under ¶10,060. A good portion of the paragraph has been removed.

• Chapter 11: ¶11,130.20—The heading has been changed to “Election strategy”. ¶11,355.20—A good portion of the paragraph has been deleted.

• Chapter 12: ¶12,040.10 and ¶12,040.20—These paragraph numbers and a new heading have been inserted before the body text.

• Chapter 13: ¶13,025—“Proposed” has been removed from heading. ¶13,060—A good portion of the paragrah has been removed. ¶13,600—The paragraph heading has been changed to “Requirement For Information Reporting of Tax Avoidance Transactions”.

• Appendix I: ¶19,530.10—A good portion of the paragraph now falls under ¶19,530. ¶19,600—The entire paragraph is now ¶19,700; the heading remains the same.

6thEdition

7thEdition

1 1

2 2

3 3

Chapter 1: Assignment Problems

Chapter 2: Assignment Problems

6thEdition

7thEdition

1 1

2 3

3 2

4 4

5 5

6 6

7 7

8 8

Advisory Case 1 9

Advisory Case 2 10

The tables that follow list the changes in the numbering of the Assignment Problems between this edition and last year’s edition. Most chapters show a difference in numbering between last year’s Assignment Problems and problems in the 7th edition; however, in some cases, Exercises and Advisory Cases from the 6th edition are now Assignment Problems. In addition, each table shows any new problems that have been added.

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Chapter 3: Assignment Problems

6thEdition

7thEdition1 (new)

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Exercise 8 5

Exercise 11 6

Exercise 14 7

Exercise 15 8

1 9

2 10

3 11

4 12

5 13

6 14

7 15

8 16

9 17

10 18

11 19

12 20

13 21

14 22

15 23

16 24

Advisory Case 1 25

Advisory Case 2 26

Advisory Case 3 27

Advisory Case 4 28

6thEdition

7thEdition1 (new)

2 (new)

3 (new)

Exercise 14 4

5 (new)

1 6

2 7

3 8

4 9

5 10

6 11

7 12

8 13

9 14

10 15

11 16

14 17

15 18

16 19

17 20

Advisory Case 1 21

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23 (new)

24 (new)

25 (new)

12 26

13 27

18 28

Advisory Case 2 29

Advisory Case 3 30

Advisory Case 4 31

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Chapter 5: Assignment Problems

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4 (new)

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5 11

6 12

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Advisory Case 1 17

Advisory Case 2 18

Advisory Case 3 19

6thEdition

7thEdition1 (new)

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4 6

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6 8

7 9

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Chapter 7: Assignment Problems

6thEdition

7thEdition1 (new)

2 (new)

Exercise 10 3

4 (new)

5 (new)

6 (new)

7 (new)

8 (new)

9 (new)

10 (new)

Exercise 5 11

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9 13

Exercise 11 14

Exercise 16 15

2 16

3 17

4 18

8 19

10 20

6 21

5 22

7 23

Advisory Case 1 24

Advisory Case 2 25

6thEdition

7thEdition1 (new)

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Exercise 1 3

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2 5

3 6

5 7

6 8

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Advisory Case 1 11

Advisory Case 2 12

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Chapter 9: Assignment Problems

6thEdition

7thEdition

Exercise 9 1

Exercise 8 2

Exercise 1 3

4 (new)

2 5

1 6

5 7

7 8

8 9

10 10

3 11

4 12

6 13

9 14

11 15

Advisory Case 2 16

Advisory Case 1 17

Chapter 10: Assignment Problems

6thEdition

7thEdition

Exercise 6 1

Exercise 8 2

1 3

4 4

7 5

8 6

9 7

10 8

11 9

12 10

13 11

14 12

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6thEdition

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7 3

4 (new)

Exercise 6 5

2 6

3 7

4 8

6 9

8 10

9 11

Advisory Case 1 12

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Chapter 12: Assignment Problems

6thEdition

7thEdition1 (new)

2 (new)

3 (new)

4 (new)

5 (new)

6 (new)

Exercise 7 7

Exercise 8 8

1 9

2 10

3 11

4 12

5 13

6 14

7 15

8 16

9 17

10 18

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12 20

13 21

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Advisory Case 1 24

6thEdition

7thEdition

8 1

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10 3

11 4

12 5

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3 9

4 10

5 11

6 12

7 13

Advisory Case 1 14

Advisory Case 2 15

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Chapter 14: Assignment Problems

6thEdition

7thEdition

Exercise 1 1

Exercise 2 2

Exercise 7 3

Exercise 10 4

1 5

2 6

3 7

4 8

5 9

6 10

9 11

7 12

8 13

Appendix I: Assignment Problems

6thEdition

7thEdition

1 1

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3 3

4 4

5 5

6 6

7 7

8 8

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12 12