Barry and Mary know that pension sharing can result in tax savings. Both are 65 years old and have been married for 35 years. Both have contributed to the Quebec Pension Plan (QPP) since age 18. Mary is a doctor and made more money than Barry over the years. Marys QPP pension is $1,208/month while Barrys is $790/month. As a result of pension sharing, what will be Barry and Marys monthly QPP benefit for tax reporting purposes?

1. Marys QPP benefit has been reduced from $1,208 to $790 and Barrys benefit has increased from $790 to $1,208.

2. Marys QPP benefit has been reduced from $1,208 to $1,052 and Barrys benefit has increased from $790 to $946.

3. Marys QPP benefit has been reduced from $1,208 to $900 and Barrys benefit has also decreased from $790 to $482.

4. Marys QPP benefit has been reduced from $1,208 to $790 and Barrys benefit has increased from $790 to $890.

5. Marys QPP benefit has been decreased from $1,208 to $900 and Barrys benefit has increased $790 to $1,098.