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On January 31, 2022, the first year of her retirement, Concetta withdrew $12,000 from her spousal RRSP. In 2021, Lorenzo, her husband had deposited $10,000
On January 31, 2022, the first year of her retirement, Concetta withdrew $12,000 from her spousal RRSP. In 2021, Lorenzo, her husband had deposited $10,000 to the spousal RRSP giving it a balance at the end of the year of $120,000. Concetta turned 64 on January 15, 2021, and Lorenzo turned 63 on December 24, 2021. Both Lorenzo and Concetta have a marginal tax rate of 40%.
a. How much did Concetta receive when she made the withdrawal?
b. How much income tax is owed by one or both?
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
