Question: PART II: Short Answer. Write your answers in the space provided. (18 marks) 1. Larry's salary in 2018 is $79,000. He has no pension plan

PART II: Short Answer. Write your answers in the space provided. (18 marks) 1. Larry's salary in 2018 is $79,000. He has no pension plan at work and he put the maximum into an RRSP at the end of 2019. Larry had no RRSP carry forward from previous years. How much did Larry save on his taxes by making this RRSP contribution if his marginal tax rate is 30.5%? (2 marks) 2. Jon bought a $150,000 10-year term annuity using a non-registered savings account. The annuity is to be treated as a prescribed annuity and earns 5% annually. How much tax will Jon have to pay on annual payments if the marginal tax rate on interest is 40% and the average tax rate is 30%and he has $80,000 of other pension income? (2 marks)

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