Practice Problem 6.5: RRSPS Cherie Cardinal had the following reported on her tax return in the previous year: Net employment income (after an RPP deduction of $2,500) $30,000 Net rental loss ($2,000) Interest income $5,000 Spousal support received $9,500 Undeducted RRSP contributions nil Unused RRSP deduction room $2,000 Cherie has a pension adjustment reported on her T4 slip each year. In the current year, her pension adjustment is $4,500 and in the prior year it was $5,000. During the current year, Cherie makes the following contributions to her RRSP: July 1 of the current year: $3,000 January 2 of the following year: $1,000 What is Cherie Cardinal's maximum RRSP deduction and unused deduction room for the current year?
Practice Problem 6.5: RRSPS Cherie Cardinal had the following reported on her tax return in the previous year: Net employment income (after an RPP deduction of $2,500) $30,000 Net rental loss ($2,000) Interest income $5,000 Spousal support received $9,500 Undeducted RRSP contributions nil Unused RRSP deduction room $2,000 Cherie has a pension adjustment reported on her T4 slip each year. In the current year, her pension adjustment is $4,500 and in the prior year it was $5,000. During the current year, Cherie makes the following contributions to her RRSP: July 1 of the current year: $3,000 January 2 of the following year: $1,000 What is Cherie Cardinal's maximum RRSP deduction and unused deduction room for the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Practice Problem 6.5: RRSPS
Cherie Cardinal had the following reported on her tax return in the previous year:
Net employment income (after an RPP deduction of $2,500)
$30,000
Net rental loss
($2,000)
Interest income
$5,000
Spousal support received
$9,500
Undeducted RRSP contributions
nil
Unused RRSP deduction room
$2,000
Cherie has a pension adjustment reported on her T4 slip each year. In the current year, her pension adjustment
is $4,500 and in the prior year it was $5,000. During the current year, Cherie makes the following contributions
to her RRSP:
July 1 of the current year: $3,000
January 2 of the following year: $1,000
What is Cherie Cardinal's maximum RRSP deduction and unused deduction room for the current year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e934dbf-e445-492a-92ad-78acbc9d39ff%2F28429295-d071-4d87-9a8f-c8fd20f3e69d%2Fgp6cmsh_processed.png&w=3840&q=75)
Transcribed Image Text:Practice Problem 6.5: RRSPS
Cherie Cardinal had the following reported on her tax return in the previous year:
Net employment income (after an RPP deduction of $2,500)
$30,000
Net rental loss
($2,000)
Interest income
$5,000
Spousal support received
$9,500
Undeducted RRSP contributions
nil
Unused RRSP deduction room
$2,000
Cherie has a pension adjustment reported on her T4 slip each year. In the current year, her pension adjustment
is $4,500 and in the prior year it was $5,000. During the current year, Cherie makes the following contributions
to her RRSP:
July 1 of the current year: $3,000
January 2 of the following year: $1,000
What is Cherie Cardinal's maximum RRSP deduction and unused deduction room for the current year?
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