Question
PART A: Ms. Sonia Nexus is a computer specialist with net employment income of $96,000 in 2019. She had a pension adjustment of $5,000. During
PART A: Ms. Sonia Nexus is a computer specialist with net employment income of $96,000 in 2019. She had a pension adjustment of $5,000. During the year ending December 31, 2019 she has: interest income of $10,250, rental losses of $6,750, and a loss from her unincorporated business of $8,000 In addition, she makes spousal support payments of $14,000. She had unused RRSP contribution room from prior years of $4,500. Required: Calculate Ms. Nexuss earned income for RRSP purposes and her maximum contribution possible. Show all calculations.
PART B: Cody Bryants spouse has had an RRSP for several years, while she was working outside the home. For the first time, during 2018, she stopped working and Cody began making spousal RRSP contributions. The amount of the 2018 contribution is $4,500 and this is followed, in 2019, by an additional contribution to his spouses plan of $5,500. Cody deducts both of these contributions. At the beginning of 2020, his spouses plan has a balance of $226,000. During this year, she withdraws $11,000 from her RRSP. How will this withdrawal be taxed?
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