Jerry Singh is employed by X Ltd., a Canadian-controlled private corporation. The following information Pertains to her
Question:
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.
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng