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You are a CPA working in the tax group of a medium-sized accounting firm, Smith & Ross LLP. This morning, the partner of the tax

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You are a CPA working in the tax group of a medium-sized accounting firm, Smith & Ross LLP. This morning, the partner of the tax group approached you regarding new clients, Cherie and Tabib Carter. Cherie is a 50-year-old pharmacologist living in Calgary, AB. Tabib , aged 55, is a partner at a large law firm in Calgary. Tabib and Cherie have two children who are currently attending elementary school in Calgary. Tabib and Cherie starting to look forward to retirement and would like professional advice in effectively planning for their retirement. The partner would like you to calculate Tabib and Cherie 's Registered Retirement Savings Plan (RRSP) contribution room for the current year,2020, since this information will assist in the Carters' retirement planning. The tax partner provides you with the Carters' client file, which includes the Carters' tax returns from 2019, as well as notes prepared by the partner's administrative assistant after his first meeting with the couple. The file and notes contain the following information. Additional information . Cherie was previously married. According to her divorce agreement. she must make monthly payments for the maintenance of her former spouse of $500. Cherie indicated that she has always made all required spousal support payments. . A copy of Cherie's T4 slip for 2019 shows gross salary of $62.000. From this amount. the employer withheld the following amounts. Income tax: $15,200 CPP: maximum for the year (see the Tax Rate sheet) . El: maximum for the year (see the Tax Rate sheet) Registered Pension Plan (RPP): $1.700 Pension Adjustment: $4,000 . Other relevant information from Cherie's tax return for 2019 is shown below. Actual amount of eligible dividends: $3,500 Interest income: $3,600 Unused RRSP deduction room at the end of 2019: $5,000 . A copy of Tabib's statement of partnership income from the previous year shows that his income earned as an active partner was $325.000. Tabib's law firm does not provide pension plans for its partners

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