1. Larry's salary in 2020 is $179,000. He has no pension plan at work and he...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Larry's salary in 2020 is $179,000. He has no pension plan at work and he put the maximum into an RRSP at the end of 2021. Larry had no RRSP carry forward from previous years. The money purchase limits for 2020 and 2021 are $27,830 and $29,210, respectively. How much did Larry save on his taxes by making this RRSP contribution if his marginal tax rate is 30.5%? (3 marks) 1. Larry's salary in 2020 is $179,000. He has no pension plan at work and he put the maximum into an RRSP at the end of 2021. Larry had no RRSP carry forward from previous years. The money purchase limits for 2020 and 2021 are $27,830 and $29,210, respectively. How much did Larry save on his taxes by making this RRSP contribution if his marginal tax rate is 30.5%? (3 marks)
Expert Answer:
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
Posted Date:
Students also viewed these accounting questions
-
Refer to problem 9. If your marginal tax rate is 30%, and 50% of capital gains are taxable, what is the after-tax rate of return on your bond investment? In problem 9 You bought a 10-year, 5% coupon...
-
Larry has expanded his business. When he met with his accountant at the end of the year, he learned that his total assets are in excess of $1 million. His accountant asked Larry if he had a will, and...
-
Larry Landlord has recently renovated an apartment and has put it on the market to be rented for $800.00 a month. Larry Landlord has been in business for approximately five (5) years and has had both...
-
Given that a quantity Q(t) is described by the exponential growth function Q(t) = 400e0.01t where t is measured in minutes, answer the following questions. (a) What is the growth constant k? k = (b)...
-
During its first year of operations, Williams Plumbing Supply Co. had net sales of $6,500,000, wrote off $40,000 of accounts as uncollectible using the direct write-off method, and reported net...
-
Why are big, fierce animals rare?
-
Browne \& Company has no-par value common stock outstanding that is selling at \(\$ 40\) per share. The company's CEO believes that the stock price is undervalued and decides to buy back 10,000...
-
Norman Co. borrowed $15,000 from the local bank on April 1, 2012, when the company was started. The note had an 8 percent annual interest rate and a one-year term to maturity. Norman Co. recognized...
-
In reality, the goods/services distinction is more of a continuum than an absolute rule true. Or false
-
Transform the E-R diagram of Figure 8-23 into a set of 3NF relations. Make up a primary key where needed and one or more nonkey attributes for each entity. Figure 8-23 TOOL ++ Used_on PROJECT Project...
-
10-Year Bond Futures [cx (1-v20) K = 1000 x +100 x 20 Where i-yield divided by 200 1 v = (1 + i) c=coupon rate/2 (ie 3) Internal steps rounded to 8 decimal places with answer rounded to two decimal...
-
During the 2023 FBT year, Alpine Resorts Pty Ltd (Alpine) paid the following amounts in relation to a corporate golf day: $500 for Simon, employed by Alpine as the marketing manager, to play golf and...
-
At standard temp and pressure (which is sea level pressure of about 1 atm and 25C) we can assume the following relationship-24,000 mL of gas = 1 mole of gas molecules. In fermentation, we can also...
-
Assuming A matrix. is (31-A) invertible? A [4-1 5-2 Answer
-
Global supply chain issues encompass a range of challenges that organisations face in managing their supply chains across borders. Such issues can disrupt the flow of goods, increase costs and impact...
-
Spaceship Earth is the most recognizable structure at Epcot Center at Disney World in Orlando, Florida The ride is a geodesic sphere made up of thousands of small triangular panels. The circumference...
-
Small-business telephone users were surveyed 6 months after access to carriers other than Carrier A became available for wide-area telephone service. Of a random sample of 230 Carrier A users, 143...
-
You deposit $10,000 in a savings account that earns 7.5% simple interest per year. What is the minimum number of years you must wait to double your balance? Suppose instead that you deposit the...
-
What is the tax base for the alternative minimum tax? Explain the general computation of the base.
-
Anton purchases a building on May 4, 1994, at a cost of $270,000. The land is properly allocated $30,000 of the cost. Anton sells the building on October 18, 2011, for $270,000. What is his gain or...
-
Tina owns and operates Timely Turn Tables (TTT) as a sole proprietorship. TTTs taxable income during the current year is $80,000. In addition to the TTT income, Tina has the following income and...
-
Product costs in a complex organization are likely to be distorted if a traditional volume-based cost. driver is used and a. raw materials costs are a significant percentage of total production...
-
All of the following are likely to be used as a cost allocation base in activity-based costing except the a. number of different materials used to manufacture the product. b. units of materials used...
-
TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows: Additional information about the company follows: Wood sets require \($40\)...
Study smarter with the SolutionInn App