Elmo Everett is 68 years old and his wife of many years, Elena Everett, is 70 years old. They are both retired and, other than the aches and pains that go with advancing years, they are both in good health. They have no deductions to be used in the determination of Taxable income and their respective incomes for the current taxation year are as follows: Elmo Elena OAS Payments $ 7,100 $ 7,100 CPP $ 11,300 $ 3,500 RPP $ 54,000 $ Interests $ $ 300 Total $ 72,400 $ 10,900 The only tax credits that are available to Elmo and Elena are the following: basic personal spousal age pension income . . Required: Prepare a brief memo to your client outlining the ollowing: 1. Elena believes they can split all NIFTP and Taxable Income. That is not correct. Advise the recommended optimal pension income split to be elected. Specifically, the eligible income and the proposed split. (hint, recommend 50:50 split) 2. Determine the Net Federal Taxes Payable for both Elmo and Elena, assuming no pension income splitting election. Note, Elmo likes to review the calculations so ensure it is easy for him to follow. 3. Determine the Net Federal Tax Payable for both Elmo and Elena, assuming maximum use of the pension income splitting election 4. Summarize the total tax savings resulting from the pension income splitting election Elmo Everett is 68 years old and his wife of many years, Elena Everett, is 70 years old. They are both retired and, other than the aches and pains that go with advancing years, they are both in good health. They have no deductions to be used in the determination of Taxable income and their respective incomes for the current taxation year are as follows: Elmo Elena OAS Payments $ 7,100 $ 7,100 CPP $ 11,300 $ 3,500 RPP $ 54,000 $ Interests $ $ 300 Total $ 72,400 $ 10,900 The only tax credits that are available to Elmo and Elena are the following: basic personal spousal age pension income . . Required: Prepare a brief memo to your client outlining the ollowing: 1. Elena believes they can split all NIFTP and Taxable Income. That is not correct. Advise the recommended optimal pension income split to be elected. Specifically, the eligible income and the proposed split. (hint, recommend 50:50 split) 2. Determine the Net Federal Taxes Payable for both Elmo and Elena, assuming no pension income splitting election. Note, Elmo likes to review the calculations so ensure it is easy for him to follow. 3. Determine the Net Federal Tax Payable for both Elmo and Elena, assuming maximum use of the pension income splitting election 4. Summarize the total tax savings resulting from the pension income splitting election