RRSP Contributions [15 marks; approx. 25 mins] Doris Day is employed by ABC Ltd., a Canadian-controlled private corporation. The following information pertains to her income over the past two years since she started working for ABC Ltd.: 2018 110,500 13,000 (5,200) (8,200) 110,100 2019 116,000 18,000 (5,400) (4,000) 124,600 31,000 28,000 Income from Employment: Salary before benefits Employee stock option benefit Registered pension plan contributions Other deductible employment expenses Subtotal from Employment Income from Business: Business income - Jewellery party sales Income from Property: Interest income Taxable capital gain Dividend on DPL stock Subtotal from Property Other Expenses: Spousal support payment Net income for Tax Purposes (NIFTP - Div B) 1,950 8,200 9,400 19,550 1,600 18,000 2,100 21,700 (20,000) (18,000) 140,650 156,300 ABC Ltd. contributes an amount that matches the amount contributed by an employee to the plan. Her pension adjustments (PA) are: $ 13,500 for 2018 & $ 14,000 for 2019. Doris has never contributed to a registered retirement savings plan (RRSP), although she had enough income to entitle her to contribute the maximum amounts allowed as follows (carry forward contribution room) 2016 $ 25,370 2017 $ 26,010 2018 $ 26,230 REQUIRED (SHOW ALL DETAILS & CALCUATIONS): Part 1 [8 marks] Calculate Doris's earned income for the purpose of determining her maximum 2019 RRSP contribution by listing the items and amounts that would be included in her earned income. Part 2 [7 marks] Based on the above information, calculate Doris's maximum deductible RRSP contribution that she could make in 2019. (RRSP Maximum Contribution Limit 2019 - $26,500) RRSP Contributions [15 marks; approx. 25 mins] Doris Day is employed by ABC Ltd., a Canadian-controlled private corporation. The following information pertains to her income over the past two years since she started working for ABC Ltd.: 2018 110,500 13,000 (5,200) (8,200) 110,100 2019 116,000 18,000 (5,400) (4,000) 124,600 31,000 28,000 Income from Employment: Salary before benefits Employee stock option benefit Registered pension plan contributions Other deductible employment expenses Subtotal from Employment Income from Business: Business income - Jewellery party sales Income from Property: Interest income Taxable capital gain Dividend on DPL stock Subtotal from Property Other Expenses: Spousal support payment Net income for Tax Purposes (NIFTP - Div B) 1,950 8,200 9,400 19,550 1,600 18,000 2,100 21,700 (20,000) (18,000) 140,650 156,300 ABC Ltd. contributes an amount that matches the amount contributed by an employee to the plan. Her pension adjustments (PA) are: $ 13,500 for 2018 & $ 14,000 for 2019. Doris has never contributed to a registered retirement savings plan (RRSP), although she had enough income to entitle her to contribute the maximum amounts allowed as follows (carry forward contribution room) 2016 $ 25,370 2017 $ 26,010 2018 $ 26,230 REQUIRED (SHOW ALL DETAILS & CALCUATIONS): Part 1 [8 marks] Calculate Doris's earned income for the purpose of determining her maximum 2019 RRSP contribution by listing the items and amounts that would be included in her earned income. Part 2 [7 marks] Based on the above information, calculate Doris's maximum deductible RRSP contribution that she could make in 2019. (RRSP Maximum Contribution Limit 2019 - $26,500)
