Ronaldo returned to your office with ancillary information [to the WK4 Mini Problem] concerning his spouse Sara and Child Clara. Ronaldo wants to minimize tax payable and will utilize any deductions and/or credits permitted. Spouses Investments Sara Sara received a $200,000 loan from Ronaldo in 2021. The loan was made at the then prescribed rate of 1.5%. The prescribed rate is presently 2%. The $200,000 was invested in a bond portfolio that paid $9,000 interest in 2022. Sara also received a $500,000 from Ronaldo as a gift in 2021. The $500,000 was invested in Canadian public company shares. In 2022 the shares paid $40,000 in dividends and produced $60,000 in capital gains. Sara has no other sources of income. Childs Investments Clara (14 years old) Clara received a $100,000 as a gift in 2021 which was invested in shares of Canadian public companies. In 2022 these shares paid $4,000 in dividends and produced $20,000 in capital gains. Ancillary Information In 2022 Ronaldo made the following contributions: o Claras RESP contributions of $2,500 each year $ 2,500 o Saras TFSA maximum contribution each year $ 6,000 o Saras RRSP unused contribution room $15,000 $ 5,000 Ronaldo would like to make maximum contributions to his TFSA and RRSP. Each year Ronaldo made the maximum TFSA contribution. Ronaldo also wants to know the consequence if he over contributes $5,000 to his RRSP. He had $4,000 unused contribution room Dec. 31, 2021 and the sale of his busines resulted in a Pension Reversal of $10,000. His Earned Income and Pensions Adjustment for 2021 and 2022 were: 2021 2022 Earned Income $150,000 $120,000 Pension Adjustment $12,000 $8,000