Jerry Singh is employed by X Ltd., a Canadian-controlled private corporation. The following information Pertains to her income over the last 2 years.

                                                                                                                        2021……………………….2020

Salary before benefits……………………………………………………………..$230,000…………………$214,000

Employee stock option benefits………………………………………………… 14,000…………………… 8,000

Employment interest benefit…………………………………………………….. 10,000…………………… 12,000

Registered Pension plan contributions………………………………………. (5,500)…………………….. (5,200)

Other deductible employment expenses………………………………………(5,000)…………………….. (4,000)

Interest income……………………………………………………………………4,000…………………………3,000

Taxable capital gains……………………………………………………………  6,500…………………………4,000

Business income…………………………………………………………………30,000……………………….20,000

Royalty income from books……………………………………………………   3,500……………………….. 2,500

Rental loss before capital cost allowance……………………………………  (6,000)……………………..(11,000)

Dividends from IBM stocks………………………………………………………1,000………………………1,2000

Jerry participates in a defined registered pension plan. His pension adjustment for 2020 and 2021 are as follows

2020…………………………………………….$9,000

2021……………………………………………..$9,500

Required:-

a. Calculate Jerry’s allowable RRSP Contributions for 2021.

b. Explain what is meant by deduction and contribution limit for RRSP.

Answer rating: 100% (QA)

Question a Allowable RRSP contribution of Jerry for 2021 1883000 b Deduction Limit The amount that c... View the full answer