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Assignment Problem Ten - 5 (Employment Income With RRSP) Ms. Stratton has been the controller for a large publicly traded corporation for the last five

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Assignment Problem Ten - 5 (Employment Income With RRSP) Ms. Stratton has been the controller for a large publicly traded corporation for the last five years. The following information relates to the year ending December 31, 2020: 1. Ms. Stratton had a gross salary of $130,000, from which her employer made the following deductions: Income taxes $33,342 Registered Pension Plan contributions 2,390 Employment Insurance premiums 856 Canada Pension Plan contributions 2,898 Contributions to registered charities 1,600 Employee's portion of benefit plans (See Point 2 below) 1,436 2. It is the policy of the company to stay one-half of the cost of certain benefit plans. The follow- ing amounts were paid by the company for Ms. Stratton: Group term life insurance $ 96 Provincial health insurance plan 482 Dental plan 173 Major medical care (Private insurer) 396 Group income protection Total $1,436 289 3. Ms. Stratton's employer paid $2,300 for her annual membership in the Hot Rocks Curling Club. Ms. Stratton uses the club largely for employment-related entertaining. 4. Ms. Stratton was awarded a one week trip to Bermuda by her employer for being with the company for 15 long years. The fair market value of this trip was $5,000. 6. Ms. Stratton is required to travel to the offices of her employer's clients on a regular and continuing basis. As a result, her employer reimburses her for actual expenses. These pay- ments totaled $8,462 for the year. 6. During the year, Ms. Stratton paid professional dues of $225. 7 During the year, Ms. Stratton made contributions to a Registered Retirement Savings Plan (RRSP) in the amount of $20,000 and to a Tax Free Savings Account (TFSA) in the amount of $6,000 (her maximum contribution room). At the end of 2019, Ms. Stratton's Unused RRSP Deduction Room was nil and she had no undeducted RRSP contributions. Her employer reported that she had a 2019 Pension Adjustment of $5,560. Her Earned Income for 2019 is equal to her 2020 Earned Income. Required: A Calculate Ms Stratton's net employment income for the yert ending December 31, 2020, and indicate the reasons that you have not included items in your calculations. Ignore GST/ HST/PST implications, B. Calculate Ms. Stratton's maximum RRSP deduction for 2020. C Comment on the advisability of her $20,000 contribution to her RRSP

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