Image caption Carla Goodman has been employed by Army Brake Products (ABP), a Canadian controlled private corporation,
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Carla Goodman has been employed by Army Brake Products (ABP), a Canadian controlled private corporation, since 2015. The following information pertains to her income over the past two years: 2018 2017 Salary Before Benefits $120,000 $120,000 8,000 5,000 Employee Stock Option Benefit Benefit On Interest Free Loan 6,000 5,000 (4,000) (3,000) Registered Pension Plan Contributions Deductible Employment Expenses Interest Income (4,500) (4,000) 1,600 Taxable Capital Gains 10,000 Business Income 35,000 5,000 Royalty Income Rental Loss (5,000) (10,000) Spousal Support Payments (15,000) (12,000) Non-Eligible Dividends On ABP Stock 900 1,000 Totals $164,200 $153,600 The royalty income listed above is 2 percent of the sales of the "Handy Shopper," a gadget Ms. Goodman invented three years ago. The business income listed above is earned from selling leather goods. Ms. Goodman shows you her notice of assessment from 2016, and it indicated she had unused RRSP contribution room of $12,500. Beginning in 2017, Ms. Goodman participates in ABP's employee money purchase Registered Pension Plan. ABP contributes twice the amount contributed by an employee to the plan. Her Pension Adjustment for 2017 is $9,000. Required Ignore all GST considerations. A. Calculate Ms. Goodman's Earned Income for the purpose of determining her maximum 2018 RRSP contribution by listing the items and amounts that would be included in her Earned Income. ist separately the items that are not included in the Earned Income calculation. B. Calculate Ms. Goodman's maximum deductible RRSP contribution for 2018. 1,800 15,000 34,000 7,000 Carla Goodman has been employed by Army Brake Products (ABP), a Canadian controlled private corporation, since 2015. The following information pertains to her income over the past two years: 2018 2017 Salary Before Benefits $120,000 $120,000 8,000 5,000 Employee Stock Option Benefit Benefit On Interest Free Loan 6,000 5,000 (4,000) (3,000) Registered Pension Plan Contributions Deductible Employment Expenses Interest Income (4,500) (4,000) 1,600 Taxable Capital Gains 10,000 Business Income 35,000 5,000 Royalty Income Rental Loss (5,000) (10,000) Spousal Support Payments (15,000) (12,000) Non-Eligible Dividends On ABP Stock 900 1,000 Totals $164,200 $153,600 The royalty income listed above is 2 percent of the sales of the "Handy Shopper," a gadget Ms. Goodman invented three years ago. The business income listed above is earned from selling leather goods. Ms. Goodman shows you her notice of assessment from 2016, and it indicated she had unused RRSP contribution room of $12,500. Beginning in 2017, Ms. Goodman participates in ABP's employee money purchase Registered Pension Plan. ABP contributes twice the amount contributed by an employee to the plan. Her Pension Adjustment for 2017 is $9,000. Required Ignore all GST considerations. A. Calculate Ms. Goodman's Earned Income for the purpose of determining her maximum 2018 RRSP contribution by listing the items and amounts that would be included in her Earned Income. ist separately the items that are not included in the Earned Income calculation. B. Calculate Ms. Goodman's maximum deductible RRSP contribution for 2018. 1,800 15,000 34,000 7,000
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Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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