Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a severe disability as a child and was financially and physically dependent on Hana his entire life. Hana opened an RDSP for Kwan nine years ago and contributed a total of $27,000 to the account. Hana's contributions attracted total Canada Disability Savings Grants (CDSG) of $6,000. The RDSP had a balance of $42,000 when Kwan died. What is the tax impact resulting from Kwan's death? Question 20 options: Kwan's estate will receive taxable income of $9,000 and non-taxable income of $ 27,000. Kwan's estate will receive taxable income of $15,000 and Hana will receive non-taxable income of $27,000. Kwan's estate will receive taxable income of $27,000 and non-taxable income of $15,000.
Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a severe disability as a child and was financially and physically dependent on Hana his entire life. Hana opened an RDSP for Kwan nine years ago and contributed a total of $27,000 to the account. Hana's contributions attracted total Canada Disability Savings Grants (CDSG) of $6,000. The RDSP had a balance of $42,000 when Kwan died. What is the tax impact resulting from Kwan's death? Question 20 options: Kwan's estate will receive taxable income of $9,000 and non-taxable income of $ 27,000. Kwan's estate will receive taxable income of $15,000 and Hana will receive non-taxable income of $27,000. Kwan's estate will receive taxable income of $27,000 and non-taxable income of $15,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a severe disability as a
child and was financially and physically dependent on Hana his entire life. Hana opened an RDSP for Kwan nine years
ago and contributed a total of $27,000 to the account. Hana's contributions attracted total Canada Disability Savings
Grants (CDSG) of $6,000. The RDSP had a balance of $42,000 when Kwan died. What is the tax impact resulting from
Kwan's death? Question 20 options: Kwan's estate will receive taxable income of $9,000 and non-taxable income of $
27,000. Kwan's estate will receive taxable income of $15,000 and Hana will receive non-taxable income of $27,000.
Kwan's estate will receive taxable income of $27,000 and non-taxable income of $15,000.
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