prob034 - (RRSP of which he claimed $15,500 for 2007 and...

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Problem 34 (Past exam question: 13 minutes) (Text: Ch. 9) On July 1, 2007, Mr. Big Shot took early retirement because of job dissatisfaction. During the rest of 2007 and most of 2008, he was unemployed. However, on November 1, 2008 he obtained an employment position. His income for tax purposes for 2006 to 2008 was as follows: 2006 2007 2008 Employment income $65,000 $35,000 $ 12,500 Pension income Nil 22,500 22,500 Dividends from taxable Canadian public corporations 15,000 13,500 10,000 Interest income 10,000 6,250 7,500 Rental loss (2,500) (3,750) (6,000) Mr. Big Shot’s pension adjustment for 2006 was Nil. On February 15, 2008 he contributed $18,000 to a spousal registered retirement savings plan
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Unformatted text preview: (RRSP) of which he claimed $15,500 for 2007 and $2,500 for 2008. In November and December 2008, Mr. Big Shot contributed $600 to his new employer's defined-benefit, registered pension plan to which his employer also contributed and $446 to the Canada Pension Plan. His pension adjustment for 2007 was nil. On November 1, 2008, Mr. Big Shot received a reassessment notice in respect of his 2007 RRSP deduction reducing the amount from $15,500 to $11,250. Required : (a) Determine whether the $11,250 reassessment amount is correct. (b) Determine the deductible RRSP amount for 2008....
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This note was uploaded on 11/19/2010 for the course ACC 742 taught by Professor Sydor during the Spring '10 term at Ryerson.

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