An individual has an RSP that they are drawing money out of during 2020. The RRSP has earned dividends of $10,000. The individual withdraws $32,000 from the RRSP. To obtain that much cash, the RSP sells investments worth $32,000 that have a cost basis of $20,000. What is the individual's 2020 taxable income as a result of the RRSP? A) 42000 B) 16000 C)19800 D)32000

An individual has an RSP that they are drawing money out of during 2020. The RRSP has earned dividends of $10,000. The individual withdraws $32,000 from the RRSP. To obtain that much cash, the RSP sells investments worth $32,000 that have a cost basis of $20,000. What is the individual's 2020 taxable income as a result of the RRSP? A) 42000 B) 16000 C)19800 D)32000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 18DQ

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