Question
QUESTION Jerry Singh is employed by X Ltd., a Canadian-controlled private corporation. The following information Pertains to her income over the last 2 years. 2021.2020
QUESTION
Jerry Singh is employed by X Ltd., a Canadian-controlled private corporation. The following information
Pertains to her income over the last 2 years.
2021.2020
Salary before benefits..$230,000$214,000
Employee stock option benefits 14,000 8,000
Employment interest benefit.. 10,000 12,000
Registered Pension plan contributions. (5,500).. (5,200)
Other deductible employment expenses(5,000).. (4,000)
Interest income. 4,0003,000
Taxable capital gains.. 6,5004,000
Business income 30,000.20,000
Royalty income from books 3,500.. 2,500
Rental loss before capital cost allowance..(6,000)..(11,000
Dividends from IBM stocks..1,0001,2000
Jerry participates in a defined registered pension plan. His pension adjustment for 2020 and 2021 are as follows
2020.$9,000
2021..$9,500
Required:-
a. Calculate Jerrys allowable RRSP Contributions for 2021.(6marks).
b. Explain what is meant by deduction and contribution limit for RRSP.(4 marks)
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Financial Sustainability Of Public Sector EntitiesThe Relevance Of Accounting Frameworks
Authors: Josette Caruana, Isabel Brusca, Eugenio Caperchione, Sandra Cohen, Francesca Manes Rossi
1st Edition
3030060365, 9783030060367
