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

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 29MCQ: During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000....

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During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amount
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