While examining the books and records in the general and administrative expense account of X Ltd., you came across the following contribution to the registered pension plan made by the Company on behalf of two key employees for the year ended December 31st.2021:- Registered Pension…………………..Employment Plan
While examining the books and records in the general and administrative expense account of X Ltd., you came across the following contribution to the registered pension plan made by the Company on behalf of two key employees for the year ended December 31st.2021:-
Registered Pension…………………..Employment
Plan compensation,2021
President……………………………………..$15,000……………………………………….$180,000
Vice President……………………………….$14,000………………………………………..$ 95,000
The pension plan is a defined contribution(money purchase)plan. The contribution shown were matched by equal contribution made by the employees. Reconciling accounting income to to Division B income, you discover that the following portion of RPP contribution should be disallowed from being expensed by the X Ltd for tax purposes for the year ended December 31st.2021:-
a. $NIL
b. $13070
c. $10,000
d. $11,690
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