Mehrdad contributed $$10,000$ to an RRSP ten years ago when he was $39$ years of age. On May $1,2023$ the FMV of the RRSP is $$15,000$ due solely to eligible dividends reinvested by the fund. On May $2,2023$ Mehrdad withdrew $$2,000$ from his RRSP$.$ Which of the following statements is correct?

Question $6$Answer

a$.$

His net income will be increased by the sum of the $$2,000$ received plus the gross up on $$2,000$ of eligible dividends.

b$.$

His net income will be increased by $$2,000.$

c$.$

His income tax payable will be reduced by the dividend tax credit on $$2,000$ of eligible dividends.

d$.$

His income tax payable will be reduced by the pension income credit on $$2,000$ of pension income.