Reference no: EM132437607
Exercises -
Exercise 1: Earned Income - Mr. Jarwhol Nacari has net employment income of $56,000 (he is not a member of an RPP), interest income of $22,000, net rental income of $2,500, and receives taxable support payments from his former spouse of $12,000 during the current year. What is Mr. Nacari's Earned Income for RRSP purposes for the current year?
Exercise 2: Earned Income - Ms. Shelly Devine has net employment income of $82,000 (after the deduction of $3,000 in RPP contributions), a business loss of $12,500, taxable dividends of $4,200, and pays deductible support to her former spouse of $18,000 during the current year. What is Ms. Devine's Earned Income for RRSP purposes for the current year?
Exercise 3 - Mr. Arnett's employer sponsors both a money purchase RPP and a DPSP. During the current year, his employer contributes $2,300 to the RPP and $1,800 to the DPSP on behalf of Mr. Arnett. Mr. Arnett contributes $2,300 to the RPP. Calculate the amount of the Pension Adjustment that will be included on Mr. Arnett's T4 for the current year.
Exercise 4 - During 2019, Mr. Black has taxable capital gains of $23,650, net rental incomeof $6,530, pays spousal support of $18,000, and has net employment income of $75,600. Based on his RPP contributions of $2,400 and the matching contributions made by his employer, his employer reports a 2018- p e n s i o n adjustment of $4,800. Mr. Black has Unused RRSP Deduction Room carried forward from 2018 of $10,750. Also at this time, his RRSP contains undeducted contributions of $6,560. During 2019, he makes contributions to his RRSP of $13,200. Determine Mr. Black's maximum RRSP deduction for 2019. Assuming he deducts his maximum, determine the amount of any Unused RRSP Deduction Room that he will have available at the end of 2019, and indicate whether he has any undeducted contributions remaining at the end of 2019.
Exercise 5 - During 2018, Mr. Garveau makes a $5,000 contribution to a new RRSP in which he is the registrant. His wife, Mrs. Charron Garveau also makes a $5,000 contribution to his RRSP in 2018. Mrs. Garveau does not make any further contribution to her husband's RRSP . However, Mr. Garveau makes a $6,500 contribution. During 2019, Mr. Garveau withdraws $9,000 from his RRSP. How will this withdrawal be taxed.