Question
Your client has provided you with the following information: 2019 2020 2021 Employment income $20,000 Rental income $11,000 Interest income $22,000 Royalty income $38,000 Earned
Your client has provided you with the following information:
|
| 2019 | 2020 | 2021 |
| Employment income |
| $20,000 |
|
| Rental income |
| $11,000 |
|
| Interest income |
| $22,000 |
|
| Royalty income |
| $38,000 |
|
| Earned income | $67,000 | Must be calculated |
|
|
|
|
|
|
| PA for the year | $5,000 | $8,000 |
|
| RRSP dollar limit | $26,500 | $27,230 | $27,830 |
| Unused RRSP contribution room at year end | $2,000 |
|
|
Required:
Determine the earned income for 2020.
Determine this taxpayers RRSP deduction limit for 2020. If the taxpayer contributed $10,000 into the RRSP on December 31, 2020 did they over contribute? Why / why not?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
