Stefanie Heiner provides you with the following tax related information for the year ending December 31, 2018:

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Question:

1. Her savings account earned interest of $875.

2. She realized capital gains on personal assets of $32,180.

3. She had losses on the sale of shares of $7,250.

4. She received eligible dividends of $4,620.

5. She paid spousal support totaling $12,000.

6. She received royalties on a text that she prepared for the elementary school market totaling $8,600.

Also during the year ending December 31, 2018, she operated an unincorporated business. Under GAAP rules, the business had a Net Income of $156,470. Other business related information for the year is as follows:

* Amortization in the amount of $23,400 was deducted in the determination of accounting net income. Maximum CCA, which Stefanie intends to deduct, was determined to be $31,460.

* As a result of meetings with various clients and suppliers, Stefanie incurred meal and entertainment costs of $8,560. This amount was deducted in determining accounting income.

* During the year, the business sold depreciable assets for $26,500. The net book value of these assets was $15,900, their capital cost was $31,000, and the January 1, 2018 UCC balance was $12,349. There were no additions to the class during the year.

At the beginning of 2018, Stefanie had Unused RRSP Deduction Room of $7,300. She also had undeducted contributions of $3,200.

Required:

A. For the 2018 taxation year, calculate Stefanie’s minimum Net Income For Tax Purposes before any deduction is made for RRSP purposes. Ignore CPP contributions in your calculations.

B. Calculate the maximum RRSP deduction that can be made by Stefanie for 2018. In making this calculation, assume that Stefanie’s 2017 Earned Income is equal to her 2018 Earned Income. Determine the amount of additional contributions that she would have to make in order to make the maximum RRSP deduction.