In March 2022, you pay Janice Rider, your ex-employee, a retiring allowance of $58,000, of which $35,000 is eligible for transfer to her RRSP under paragraph 60(j.1) of the Income Tax Act. Janice wants you to transfer the total amount of the eligible retiring allowance ($35,000) to her RRSP. Janice Rider also requests that you transfer an additional $5,000 to her RRSP and gives you a written statement indicating that her RRSP deduction limit is $5,000. Determine the amount of Janices retired allowance that requires tax?

1. C. $23,000

2. B. $58,000

3. D. $35,000

4. A. $53,000

5. E. $18,00