With respect to RRSP contributions, which of the following statements is correct?

Question 18 options:

Contributions made during the current year can be deducted in any subsequent year (i.e. unused RRSP contributions can be carried forward indefinitely)

Contributions made during the current year and within 30 days of the end of the current year, must be deducted in the current year.

There is no penalty for making contributions that are in excess of available RRSP deduction room.

Contributions in excess of available deduction room cannot be deducted in the current year or any subsequent year.

Which statement BEST describes the difference between a Defined Benefit Plan and a Money Purchase Plan (a.k.a. Defined Contribution Plan)?

Question 19 options:

In a Defined Contribution Plan, the plan sponsor agrees to provide a specified benefit for each year of qualifying service, whereas in a Defined Benefit Plan the plan sponsor agrees to make a specified contribution for each plan participant.

In a Defined Benefit Plan, the plan sponsor agrees to provide a specified benefit for each year of qualifying service, whereas in a Defined Contribution Plan the plan sponsor agrees to make a specified contribution for each plan participant.

In a Defined Contribution Plan, the plan sponsor normally agrees to provide a benefit equal to a certain percentage of the employee's earnings, whereas in a Defined Benefit Plan the plan sponsor agrees to provide a contribution equal to a certain dollar value each year.

In a Defined Benefit Plan, the employee assumes the most risk and uncertainty, whereas in a Defined Contribution Plan the plan sponsor assumes the risk and uncertainty.

When an individual has allowable capital losses for a tax year that exceed his or her taxable capital gains for the year, _________.

Choose the correct answer.

Question 20 options:

the excess is deductible against any other type of taxable income

the excess can be deducted against business income, but not against employment or property income

the excess becomes a capital loss carryover which can be applied to a previous or subsequent taxation year

the excess becomes a non-deductible loss