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At the end of 2019, Mr. John Smith has Unused RRSP Deduction Room of $11,150 and Undeducted RRSP contributions of $6,275. For the 2019 taxation

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At the end of 2019, Mr. John Smith has Unused RRSP Deduction Room of $11,150 and Undeducted RRSP contributions of $6,275. For the 2019 taxation year, John has net employment income of $74,500, spousal support paid of $12,400, net rental income of $5,720, Interest Income of $1,800 and royalty income of $1.920. The royalty income is on a song written by John's mother in 1962. During 2019, he is a member of his employer's RPP to which he contributed $2,500 and his employer made a matching contribution of $2,500. The RRSP Dollar Limit for 2020 is $27,230. Required A. Calculate John's Earned Income for the purpose of determining his maximum 2020 RRSP contribution by listing the items and amounts that would be included in his Earned Income. (3 marks) B. Calculate John's maximum deductible RRSP contribution for 2020. (4 marks) C. Calculate the maximum RRSP contribution that John can make for 2020 without incurring a penalty. (2 marks) At the end of 2019, Mr. John Smith has Unused RRSP Deduction Room of $11,150 and Undeducted RRSP contributions of $6,275. For the 2019 taxation year, John has net employment income of $74,500, spousal support paid of $12,400, net rental income of $5,720, Interest Income of $1,800 and royalty income of $1.920. The royalty income is on a song written by John's mother in 1962. During 2019, he is a member of his employer's RPP to which he contributed $2,500 and his employer made a matching contribution of $2,500. The RRSP Dollar Limit for 2020 is $27,230. Required A. Calculate John's Earned Income for the purpose of determining his maximum 2020 RRSP contribution by listing the items and amounts that would be included in his Earned Income. (3 marks) B. Calculate John's maximum deductible RRSP contribution for 2020. (4 marks) C. Calculate the maximum RRSP contribution that John can make for 2020 without incurring a penalty. (2 marks)

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