Prince Packaging has offices throughout Nova Scotia. John Frame, Social Insurance Number 222-555-777, had worked for the company in their Antigonish office from July 1982 until his employment was terminated in November of this year. When his employment was terminated, he was fully vested in the companys defined contribution registered pension plan, which he joined in 1984. Upon termination, John received a retiring allowance of $86,000.00. John had his employer transfer the entire eligible amount to a RRSP and took the non-eligible amount in cash.

Calculate the eligible and non-eligible portions of Johns retiring allowance as well as the income tax withheld on the amount received in cash. Include these amounts when completing Johns T4 slip.

The $101,356.00 income tax shown does not include the amount withheld on the retiring allowance.

TOTALS
Regular earnings	$127,000.00
Performance bonus	$ 35,000.00
Commissions	$ 56,923.00
Employerprovided automobile noncash taxable benefit	$ 5,237.00
Group term life insurance noncash taxable benefit	$ 1,650.00
Employee contributions to a registered pension plan (plan #3589562)	$ 3,810.00
Employer contributions to a registered pension plan	$ 3,810.00
CPP contributions	$ 2,306.70
EI premiums	$ 839.97
Income tax deducted	$101,356.00
EI insurable earnings	$ 45,900.00
CPP pensionable earnings	$ 50,100.00
Charitable donations	$ 1,600.00