Liam has the following sources of income for the current year and the preceding year:

Preceding year

Current year

Salary

$50,000

$52,000

Less: Registered Pension Plan (RPP) contributions

(2,500)

(2,700)

Business income/(loss)

5,000

(2,000)

Rental income/(loss)

(2,000)

1,000

Net income (Division B)

$50,500

$48,300

Which of the following statements is correct with respect to earned income?

a. Liam would calculate childcare expense deductions for the current year using earned income of $47,300.

b. Liam would calculate childcare expense deductions for the current year using earned income of $50,000.

c. Liam's RRSP contribution for the current year would be based on earned income of $51,000 (ignoring unused RRSP contribution room).

d. Liam's RRSP contribution for the current year would be based on earned income of $53,000 (ignoring unused RRSP contribution room).