In the current year, Heather realized a taxable capital gain of $5,600. HJack has $20,000 pre-tax income to invest in either an RRSP or a TFSA. In five years, he will use the money to buy his first house. Jack's current marginal tax rate is 35% and it will be 45% in five years. He expects a 4% rate of return on his investments. Which of the following statements is correct? Question 12 options: a) The Tax-Free Savings Account (TFSA) is the best investment because the earnings on the investment will be tax-free. b) The Registered Retirement Savings Plan (RRSP) is a better investment because he can withdraw the money tax-free under the home-buyer's plan, but the funds will need to be repaid. c) The amount withdrawn in five years will be higher for the TFSA than for the RRSP. d) The amount withdrawn in five years will be the same for both TFSAs and RRSPs.er previous year's notice of assessment indicates she has a net capital loss carry-forward from 1999 of $8,850. Her net income for tax purposes has been correctly determined as $89,450. What is Heather's taxable income? Question 14 options: a) $85,025 b) $83,850 c) $83,550 d)