Ms. Jessie Wing found a position in retail sales in September 2021. During the remainder of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ms. Jessie Wing found a position in retail sales in September 2021. During the remainder of that year, she received gross employment income of $22,500. Prior to 2021, Ms. Wing had no earned income and made no contributions to either an RRSP or a TFSA. Requirement A. Calculate Ms. Wing's 2021 employment income. What is Ms. Wing's 2021 employment income? RRSP Information Ms. Wing did not contribute to an RRSP during 2021. However, Jessie's employer sponsored a money purchase RPP to which she contributed $1,300 during 2021. This contribution was matched by a $1,300 contribution by Jessie's employer. Common-law Partner Information Prior to July 2021, Ms. Wing had been supported by and living with her common-law partner. On June 30, 2021, they formally separate and sign a document which provides Ms. Wing with a lump-sum payment of $82,000 plus $1,300 per month in spousal support. The lump-sum payment was deposited in a savings account which earned interest of $560 during the remainder of 2021. She receives six months of support payments in 2021. Additional Information. For 2021, Ms. Wing's income places her in the lowest federal income tax bracket of 15%. Further, she anticipates that her 2022 net income will also be subject to income tax at that same rate. However, she has been promised a management position beginning in January 2023. This position involves a significant increase in salary and this, combined with her increasingly profitable web-based business, will result in increased net income that will put her in the 26% federal income tax bracket. Other income (loss) sources In addition to her employment income and interest income, Ms. Wing had the following in 2021. Eligible dividends from Canadian public companies of $800. A business loss of $2,300 from a business she carries on as a sole proprietor that provides a web-based photos on canvas service. An inheritance of $51,000 from an uncle. Requirements A. Calculate Ms. Wing's 2021 employment income. B. Determine Ms. Wing's maximum deductible RRSP contribution for 2022. C. As Ms. Wing's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 2022? Ms. Jessie Wing found a position in retail sales in September 2021. During the remainder of that year, she received gross employment income of $22,500. Prior to 2021, Ms. Wing had no earned income and made no contributions to either an RRSP or a TFSA. Requirement A. Calculate Ms. Wing's 2021 employment income. What is Ms. Wing's 2021 employment income? RRSP Information Ms. Wing did not contribute to an RRSP during 2021. However, Jessie's employer sponsored a money purchase RPP to which she contributed $1,300 during 2021. This contribution was matched by a $1,300 contribution by Jessie's employer. Common-law Partner Information Prior to July 2021, Ms. Wing had been supported by and living with her common-law partner. On June 30, 2021, they formally separate and sign a document which provides Ms. Wing with a lump-sum payment of $82,000 plus $1,300 per month in spousal support. The lump-sum payment was deposited in a savings account which earned interest of $560 during the remainder of 2021. She receives six months of support payments in 2021. Additional Information. For 2021, Ms. Wing's income places her in the lowest federal income tax bracket of 15%. Further, she anticipates that her 2022 net income will also be subject to income tax at that same rate. However, she has been promised a management position beginning in January 2023. This position involves a significant increase in salary and this, combined with her increasingly profitable web-based business, will result in increased net income that will put her in the 26% federal income tax bracket. Other income (loss) sources In addition to her employment income and interest income, Ms. Wing had the following in 2021. Eligible dividends from Canadian public companies of $800. A business loss of $2,300 from a business she carries on as a sole proprietor that provides a web-based photos on canvas service. An inheritance of $51,000 from an uncle. Requirements A. Calculate Ms. Wing's 2021 employment income. B. Determine Ms. Wing's maximum deductible RRSP contribution for 2022. C. As Ms. Wing's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 2022?
Expert Answer:
Answer rating: 100% (QA)
A To calculate Ms Wings 2021 employment income we need to consider her gross employment income and any additional income sources Ms Wings gross employ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Why might cloud computing be greener than conventional computing alternatives? Research online and share examples suggesting that cloud firms could be less environmentally taxing than if a firm built...
-
Suppose that ln(S) and ln(Q) have correlation =0.3 and that S(0) = $100, Q(0) = $100, r = 0.06, S = 0.4, and Q = 0.2. Neither stock pays dividends. Use equation (20.38) to find the price today of...
-
Nicole's Necklaces purchased a diamond necklace two years ago for $700. However, due to a decrease in the popularity of pearls, the necklace is now only worth $400. What journal entry will Nicole...
-
An employment agency claims that there is a difference in the weekly earnings of workers who are union members and workers who are not union members. The table shows the weekly earnings (in dollars)...
-
Assume that on January 1, 2011, Elmers Restaurants sells a computer system to Liquidity Finance Co. for $510,000 and immediately leases the computer system back. The relevant information is as...
-
Consider the following relation and by inspecting the types of dependencies, remove any redundant and inconsistent data. O_id O_date Cust_i Cust_na Cust_state Pro_id Pro_desc (10 Marks) Pro price...
-
The revenue recognition concept A Is not in conflict with the cash basis of accounting B Controls all revenue reporting for the cash basis accounting C States that revenue is not recorded until the...
-
A gymnast's backflip is considered more difficult to do in the layout (straight body) position than in the tucked position. Why?
-
You have a pail of water with a rope tied to the handle. If you whirl the pail in a vertical circle fast enough, none of the water spills out, even when the pail is upside down. Explain why.
-
The Moon orbits Earth while Earth orbits the Sun, and thus the Moon's motion around the Sun is the combination of those two motions. Is the Moon's motion ever retrograde if observed from the Sun,...
-
Floor lamps usually have a base with large inertia, while the long body and top have much less inertia. If you want to show off by spinning a floor lamp like a baton, where should you grab the lamp?
-
What is the ratio of the rotational speed of Earth's daily rotation to that of its annual revolution?
-
Does a corporation have to act selflessly to be considered socially responsible?
-
The Adjusted Trial Balance columns of a 10-column work sheet for Webber Co. follow. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by...
-
Under what condition is difference estimation more appropriate than ratio estimation?
-
Identify three conditions that must exist before either difference or ratio estimation can be applied.
-
Identify the relative advantages and disadvantages of probability-proportional-tosize sampling.
Study smarter with the SolutionInn App