AP 10-3 (Net Income with RRSP Contributions) Mr. Josh Hansen's primary source of income is from employment. For 2020, his employment income was $78,000. Included in this figure were commissions of $16,000 and taxable employ- ment benefits of $8,000. During this year, he made contributions to his employer's money purchase (defined contribution) RPP of $2,000. His employer made a matching contribution of $2,000, as well as a $1,200 contribution to a deferred profit-sharing plan. Also during 2020, Josh had the following additional income: Interest income $3,400 1,900 Eligible dividends 6,500 Royalties from a book written by Josh Taxable capital gains 38,000 Losses for the year included the following: Rental loss $10,400 Allowable capital losses 9,000 2018 net capital loss 32,000 Josh has custody of his 7-year-old son from a former marriage and receives $14,400 in child sup- port payments each year. He also receives $9,000 in annual spousal support. During 2020, Josh incurred deductible child care costs of $4,000. Josh is also required to pay a total of $2,500 per month in spousal support payments to another former spouse. At the end of 2020, Josh had $23,000 in unused RRSP deduction room and $21,000 in unde- ducted RRSP contributions. He did not claim an RRSP deduction in 2020. Required: A. Using the rules from ITA 3, calculate Josh's 2020 net income. B. Based on the information provided, calculate . the maximum RRSP contribution that Josh can claim for 2021 without incurring a pen- alty for excess contributions; Josh's maximum RRSP deduction for 2021 and any remaining undeducted contributions, assuming he makes the maximum contribution that you have determined. C. Assume that, in addition to the information provided in the problem, Josh has 2021 busi- ness income of $160,000. Using this new information, provide the information required in Part B. Scanned with CamScanner