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How much of the resp withdrawals are taxable

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Reference no: EM133187772

Question - A parent established a registered educational savings plan (RESP) for their child in 2013, when the child was 10 years old. During the time before the child started university studies the following occurred within the RESP account:

The parent contributed a total of $15,000 to the RESP

Under the Canada Education Savings Grant (CESG) program, the federal government contributed a total of $4,000 to the RESP

The RESP earned total investment income of $3,000

During 2021, when the child was a full-time university student, all of the funds in the RESP were withdrawn and paid to the student. How much, if any, of the RESP withdrawals are taxable to the student in 2021?

A. $22,000

B. $15,000

C. $4,000

D. $3,000

E. None of the above

Reference no: EM133187772

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