Biebs thinks he's a smart investor. He has an average tax rate of 35% and a marginal tax rate of 40%. To try to get a good investment deal, he purchases $6,000 of Labour Sponsored Venture Capital Corporation shares whose provincial tax credits equal the federal tax credits. But, since he is so smart, Biebs makes this investment into his RRSP.

As a result of this move, how much did Biebs RRSP contribution cost him?

Answer rating: 100% (QA)

Since Biebs made this investment into his RRSP he will receive a tax deduction for the ... View the full answer