E6 66Questions 66-70 are based on the Salim and Lathika Hussein case studySalim and Lathika Hussein have been married for two years. Salim is 47 years old; Lathika is 42years of age. Lathika is a chartered accountant and earns a salary of $128,000. Salim is a busdriver for city transit and earns a salary of $62,500. His salary last year was $60,200.Currently, Salim and Lathika live in an apartment however, they are saving in the hopes ofpurchasing their own home in the near future. When they do make the purchase, the property willbe registered in both names as joint tenants. Lathika did own her own home in partnership withher ex-husband during her previous marriage however, that property was sold three years ago aspart of her divorce settlement. Salim has never owned a home that he has used as his principalresidence.Lathika has an RRSP to which she makes regular contributions. There was however a period of fouryears during which she did not contribute the maximum amount permitted and consequently, shehas accumulated a carryforward of $19,400. Lathika's RRSP has a current market value of$295,000. Assume the RRSP contribution limit for last year was $26,230 and the limit for this yearis $26,500.Lathika is a member of her company's defined benefit registered pension plan. The RPP is a best-earnings plan where a 1.5% unit percentage is applied to the average of the best five years ofpensionable service.Salim and Lathika have a joint non-registered investment account with a fair market value of$86,000. Earlier this year, Salim and Lathika purchased a townhouse which they use strictly as arental property. The townhouse is also registered in both names as joint tenants.What is Lathika's RRSP contribution room for this year?Source of Incomenet income from employmentdeductible alimony payments paid outchild support payments paid outnet rental income / (loss) (amounts reflect Lathika's allocationbased on 50% ownership interest in the rental property)contributions to defined benefit RPP (employee portion only)Interest income from a GICtaxable capital gains from the sale of mutual fund sharesa) $19,912b) $22,322c) $24,270d) $29.704This Year$134,000$ 9,000$ 18,000($ 6,750)$ 10,696$ 2,350$ 49,275Last Year$128,000$ 9,000$ 18,000($10,100)$ 10,207S 620($31,970)

Solution: Calculation of RRSP deduction: RRSP deduction is 18% of earned income, a maximum of…

Salim and Lathika Hussein have been married for two years. Salim is 47 years old; Lathika is 42 "ears of age. Lathika is a chartered accountant and earns a salary of $128,000. Salim is a bus river for city transit and earns a salary of $62,500. His salary last year was $60,200. Currently Falim and I Mil

Salim and Lathika Hussein have been married for two years. Salim is 47 years old; Lathika is 42 "ears of age. Lathika is a chartered accountant and earns a salary of $128,000. Salim is a bus river for city transit and earns a salary of $62,500. His salary last year was $60,200. Currently Falim and I Mil

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 46P

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