Which of the statements is correct in regard to the taxation

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Reference no: EM132769735

Problem 1: Five years ago, Jake Jones commenced making contributions to a spousal RRSP plan for his wife, Jada. Jake has made a $6,000 contribution to the spousal RRSP plan on June 1 for the past five years, including the current year. In the current year, Jake and Jada needed cash for home renovations and Jada redeemed $20,000 from her spousal RRSP plan. Which of the following statements is correct in regard to the taxation of the $20,000 in the current year?

Choose the correct answer.

A. $20,000 is included in Jake's Net Income and $0 in Jada's Net Income.

B. $2,000 is included in Jake's Net Income and $18,000 in Jada's Net income.

C. $18,000 is included in Jake's Net income and $2,000 in Jada's Net Income.

D. $0 is included in Jake's income and $20,000 in Jada's Net Income.

Reference no: EM132769735

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