Answer Happy

QUESTION #6 (15 Marks) CHAPTER 89-RRSPS Three (3) Unrelated RRSP Cases Case Study #1 lain works as a stagehand for the City Opera and Ballet Theatre. His base salary for last year was $60,000. At the end of the year, he received a bonus of $4,000. He also received $900 in interest from a non registered GIC. During the year, Iain paid annual union dues of $1,000 through payroll deductions He also made spousal support payments to his ex wife of $600 per month REQUIRED: What is tain's earned income for last year? Show oil of your work Case Study #2 Josephina is an annuitant of a spousal RRSP. Mark, her husband is the contributor, and has made the following contributions: Mark's RRSP contribution Year $2,000 Year 4 $2,000 Year 3 $5,000 Year 2 $5,000 Year 1 On December 15, Year 4, Josephina withdrew $10,000. REQUIRED: I How much of the withdrawn amounts must Josephina show as income in her tax return? Show elet your work Case Study #3 Evan is 55 years old and has $455,000 in his RRSP. He is contemplating retiring soon and withdrawing from his RRSP to fund his day-to-day openses. The original principal makes up 70% of the RSP value, with 30% coming from capital gains (approx. 25%) and interest (approx. 5%) REQUIRED: if Evan terminates his RASP, which of the following statements is TRUE? Explain your answer. a) Evan will not have to pay taxat all since this is a tax free registered plan b) Evan will not be able to withdraw or terminate the plan because he has not yet reached age 71 c) Evan will have to indude the entire withdrawal amount in his tax return as income. d) Evan will not be subject to any taxes the converts his RASP to an RRIF, 281908 ? he waits until age 65 to retire