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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, Corrine and Tarek Cullen. Corrine is a 50-year-old pharmacologist living in Edmonton, AB. Tarek, aged 55, is a partner at a large law firm in Edmonton. Tarek and Corrine have two children who are currently attending elementary school in Edmonton. Tarek and Corrine are starting to look forward to retirement and would like professional advice in effectively planning for their retirement. The partner would like you to calculate Corrine and Tarek's Registered Retirement Savings Plan (RRSP) contribution room for the current year, 2022, since this information will assist in the Cullens' retirement planning. The tax partner provides you with the Cullens' client file, which includes the Cullens' tax returns from 2021, 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. Requirement 1. Complete the partner's request and calculate the RRSP contribution room for both Corrine and Tarek in 2022. The RRSP contribution limit in 2022 is $29,210. Contribution room for Corrine: Contribution room for Tarek: Part 1 of additional information - Corrine was previously married. According to her divorce agreement, she must make monthly payments for the maintenance of her former spouse of $600. Corrine indicated that she has always made all required spousal support payments. - A copy of Corrine's T4 slip for 2021 shows gross salary of $63,500. 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): $2,100 - Pension Adjustment: $4,000 - Other relevant information from Corrine's tax return for 2021 is shown below. - Actual amount of eligible dividends: $5,500 - Interest income: $3,600 - Unused RRSP deduction room at the end of 2021: $4,800 - A copy of Tarek's statement of partnership income from the previous year shows that his income earned as an active partner was $320,000. Tarek's law firm does not provide pension plans for its partners. - Tarek owns a rental property and reported a net rental loss of $3,500 on his 2021 tax return. - CPP: maximum for the year (see the Tax Rate sheet) - El: maximum for the year (see the Tax Rate sheet) - Registered Pension Plan (RPP): $2,100 - Pension Adjustment: $4,000 - Other relevant information from Corrine's tax return for 2021 is shown below. - Actual amount of eligible dividends: $5,500 - Interest income: $3,600 - Unused RRSP deduction room at the end of 2021: $4,800 - A copy of Tarek's statement of partne ship income from the previous year shows that his income earned as an active partner was $320,000. Tarek's law firm does not provide pension plans for its partners. - Tarek owns a rental property and reported a net rental loss of $3,500 on his 2021 tax return. - Tarek owns some farm land in Alberta. There is an oil well located on this land, and Tarek receives some resource royalty income each year. In 2021, Tarek earned royalty income of $6,450. - Other relevant information from Tarek's 2021 tax return: - Actual amount of ineligible dividends: $12,300 - Interest income: $8,300 - Unused RRSP deduction room at the end of 2021: $900. 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, Corrine and Tarek Cullen. Corrine is a 50-year-old pharmacologist living in Edmonton, AB. Tarek, aged 55, is a partner at a large law firm in Edmonton. Tarek and Corrine have two children who are currently attending elementary school in Edmonton. Tarek and Corrine are starting to look forward to retirement and would like professional advice in effectively planning for their retirement. The partner would like you to calculate Corrine and Tarek's Registered Retirement Savings Plan (RRSP) contribution room for the current year, 2022, since this information will assist in the Cullens' retirement planning. The tax partner provides you with the Cullens' client file, which includes the Cullens' tax returns from 2021, 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. Requirement 1. Complete the partner's request and calculate the RRSP contribution room for both Corrine and Tarek in 2022. The RRSP contribution limit in 2022 is $29,210. Contribution room for Corrine: Contribution room for Tarek: Part 1 of additional information - Corrine was previously married. According to her divorce agreement, she must make monthly payments for the maintenance of her former spouse of $600. Corrine indicated that she has always made all required spousal support payments. - A copy of Corrine's T4 slip for 2021 shows gross salary of $63,500. 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): $2,100 - Pension Adjustment: $4,000 - Other relevant information from Corrine's tax return for 2021 is shown below. - Actual amount of eligible dividends: $5,500 - Interest income: $3,600 - Unused RRSP deduction room at the end of 2021: $4,800 - A copy of Tarek's statement of partnership income from the previous year shows that his income earned as an active partner was $320,000. Tarek's law firm does not provide pension plans for its partners. - Tarek owns a rental property and reported a net rental loss of $3,500 on his 2021 tax return. - CPP: maximum for the year (see the Tax Rate sheet) - El: maximum for the year (see the Tax Rate sheet) - Registered Pension Plan (RPP): $2,100 - Pension Adjustment: $4,000 - Other relevant information from Corrine's tax return for 2021 is shown below. - Actual amount of eligible dividends: $5,500 - Interest income: $3,600 - Unused RRSP deduction room at the end of 2021: $4,800 - A copy of Tarek's statement of partne ship income from the previous year shows that his income earned as an active partner was $320,000. Tarek's law firm does not provide pension plans for its partners. - Tarek owns a rental property and reported a net rental loss of $3,500 on his 2021 tax return. - Tarek owns some farm land in Alberta. There is an oil well located on this land, and Tarek receives some resource royalty income each year. In 2021, Tarek earned royalty income of $6,450. - Other relevant information from Tarek's 2021 tax return: - Actual amount of ineligible dividends: $12,300 - Interest income: $8,300 - Unused RRSP deduction room at the end of 2021: $900

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