Doris Day is employed by ABC Ltd., a Canadian-controlled private corporation. The following information pertains to...
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Doris Day is employed by ABC Ltd., a Canadian-controlled private corporation. The following information pertains to her income over the past two years since she started working for ABC Ltd.: Income from Employment: Salary before benefits Employee stock option benefit Registered pension plan contributions Other deductible employment expenses Subtotal from Employment Income from Business: Business income - Jewellery party sales Income from Property: Interest income Taxable capital gain Dividend on DPL stock F Subtotal from Property Other Expenses: Spousal support payment Net income for Tax Purposes (NIFTP - Div B) 2018 2019 110,500 116,000 13,000 ABC Ltd. contributes an amount that matches the amount contributed by an employee to the plan. Her pension adjustments (PA) are REQUIRED (SHOW ALL DETAILS & CALCUATIONS): Part 1 (5,200) (8,200) (4,000) 110,100 124,600 31,000 28,000 1,950 1,600 8,200 18,000 9,400 2,100 19,550 21,700 (20,000) 140,650 18,000 (5,400) $13,500 for 2018 & $ 14,000 for 2019 Doris has never contributed to a registered retirement savings plan (RRSP), although she had enough income to entitle her to contribute the maximum amounts allowed as follows (carry forward contribution room) 2016 $ 25,370 2017 $ 26,010 2018 $ 26,230 (18,000) 156,300 [8 marks] Calculate Doris's earned income for the purpose of determining her maximum 2019 RRSP contribution by listing the items and amounts that would be included in her earned income. Part 2 [7 marks] Based on the above information, calculate Doris's maximum deductible RRSP contribution that she could make in 2019. (RRSP Maximum Contribution Limit 2019-$26,500) Doris Day is employed by ABC Ltd., a Canadian-controlled private corporation. The following information pertains to her income over the past two years since she started working for ABC Ltd.: Income from Employment: Salary before benefits Employee stock option benefit Registered pension plan contributions Other deductible employment expenses Subtotal from Employment Income from Business: Business income - Jewellery party sales Income from Property: Interest income Taxable capital gain Dividend on DPL stock F Subtotal from Property Other Expenses: Spousal support payment Net income for Tax Purposes (NIFTP - Div B) 2018 2019 110,500 116,000 13,000 ABC Ltd. contributes an amount that matches the amount contributed by an employee to the plan. Her pension adjustments (PA) are REQUIRED (SHOW ALL DETAILS & CALCUATIONS): Part 1 (5,200) (8,200) (4,000) 110,100 124,600 31,000 28,000 1,950 1,600 8,200 18,000 9,400 2,100 19,550 21,700 (20,000) 140,650 18,000 (5,400) $13,500 for 2018 & $ 14,000 for 2019 Doris has never contributed to a registered retirement savings plan (RRSP), although she had enough income to entitle her to contribute the maximum amounts allowed as follows (carry forward contribution room) 2016 $ 25,370 2017 $ 26,010 2018 $ 26,230 (18,000) 156,300 [8 marks] Calculate Doris's earned income for the purpose of determining her maximum 2019 RRSP contribution by listing the items and amounts that would be included in her earned income. Part 2 [7 marks] Based on the above information, calculate Doris's maximum deductible RRSP contribution that she could make in 2019. (RRSP Maximum Contribution Limit 2019-$26,500)
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ANSWER Part 1 Calculating Doriss Earned Income for RRSP Contribution To calculate Doriss earned income for the purpose of determining her maximum 2019 RRSP contribution we need to consider the items a... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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