Reference no: EM133050158

Problem - Ms. Suzanne Sharp established an RRSP in 2011. As of January 1, 2018, Suzanne had no unused deduction room and no undeducted contributions. Her 2017 Earned Income was sufficient for her to make the maximum 2018 contribution of $26,230. However, as she acquired a new home during 2018, she made no contributions to her RRSP that year.

With the new home and furnishing purchases behind her and the receipt of a sizable inheritance from her mother's estate, she has sufficient funds to maximize her contribution in 2019. She would like you to advise her as to the maximum contribution that she can make in 2019 without incurring a penalty.

The following information is available for the taxation year ending December 31, 2018:

Employment Income
Salary	$225,000
RPP Contributions (Note 1)	7,600
CPP Withheld	2,594
EI Withheld	858
United Way Contributions Withheld	1,500
Stock Option Benefit	3,400
Deductible Employment Expenses	4,800
Interest Free Loan Benefit	2,600
Other Information
Net Business Income (Note 2)	21,400
Spousal Support Paid	18,000
Interest Income	2,500
Eligible Dividends Received	10,300
Net Taxable Capital Gains	7,400
Royalty Income (Note 3)	6,200

Note 1 Suzanne's employer makes a matching contribution of $7,600.

Note 2 The business income is from a mail order business that Suzanne runs out of her home.

Note 3 The royalty income is from a university text that her mother wrote prior to her death.

Required - Show the details of all the required calculations and ignore all GST considerations.

A. Calculate Suzanne's 2018 Net Employment Income.