Janet was born in Ireland but moved to Canada in 2016 two months after her 17th...

Janet was born in Ireland but moved to Canada in 2016 two months after her 17th birthday. In total, she made $8500 worth of TFSA contributions however she took out $1000 for a vacation in January 2019 and $1600 in Oct 2019 from her TFSA. What is her TFSA contribution limit for 2020?

a) $5,900

b) $11,400

c) $14,500

d) $20,000

e) $17,400

Expert Solution

$14,500. (Part C)

____

Explanation:

An individual can contribute to TFSA only after he/she has attained the age of 18 years. Janet attained the age of 18 years in 2017. Therefore, she can start making contributions from year 2017 only. For each year, the maximum contribution limit to TFSA is set by the government. The TFSA contribution limit for 2020 will be the cumulative total value of contribution that can be made by Janet from year 2017 to 2020 after adjustments for total contributions and withdrawals actually made. Withdrawals made during a particular will be added to the next year's unused contribution room provided it doesn't result in the total amount of contribution actually made to exceed the total amount permissible.

TFSA Contribution Limit for 2020 = TFSA Contribution Limit for 2017 + TFSA Contribution Limit for 2018 + TFSA Contribution Limit for 2019 + TFSA Contribution Limit for 2020 - Contributions Made Till Date = 5,500 + 5,500 + 6,000 + 6,000 - 8,500 = $14,500

The amount of withdrawals will not be added back in the given case as the maximum amount of contribution that can be made by Janet upto 2020 is $23,000 (5,500 + 5,500 + 6,000 + 6,000 = $23,000) as per the applicable rules. If we add the the amount of withdrawals, the total amount contributed would become $25,600 (23,000 + 1,000 + 1,600) which would exceed the the total permissible amount of $23,000.

ekkarill92 answered 2 years ago

Janet is 22, and college student that recently moved out onto her own. She works part...

Janet is 22, and college student that recently moved out onto her own. She works part time and pays all her own bills. She has been vegan for about 8 months, and likes to go jogging 2-3 times per week. Because of limited finances, she often eats ramen, apples, carrots, whatever bread or pasta is on sale. She avoids going out to eat, and mostly packs her own lunch. She doesn’t usually eat breakfast, and often forgets to drink water...

Suppose Ireland and Canada produce two goods. Good Y is labor intensive and Good X is...

Suppose Ireland and Canada produce two goods. Good Y is labor intensive and Good X is capital intensive a. Given the above PPFs, which country is relatively labor-abundant? Capital-abundant? Which good will Ireland export? What about Canada? Explain. b. Suppose the countries have identical preferences. Show the no-trade equilibrium and the free-trade equilibrium. Be sure to explain the production and consumption label points for both economies. c. Compare the relative factor prices in the two countries before and after trade,...

janet,a mother of two, decides to reduce her working hours to spend more time with her...

janet,a mother of two, decides to reduce her working hours to spend more time with her children. By itself, assumint everything else being the same, this development has necessarily resulted in a lower quality of life for janet due to a fall in income (and resultant fall in economic activity as measured by GDP). True or false, why?

Janet, a mother of two, decides to reduce her working hours to spend more time with her children.

Janet, a mother of two, decides to reduce her working hours to spend more time with her children. By itself, assuming everything else being the same, this development has necessarily resulted in a lower quality of life for Janet due to a fall in income (and resultant fall in economic activity as measured by GDP).

Peter was born after an uneventful pregnancy and weighed 3.1kg. At 3 months, he developed otitis...

Peter was born after an uneventful pregnancy and weighed 3.1kg. At 3 months, he developed otitis media and an upper respiratory tract infection. At the ages of 5 months and 11 months, he was admitted to hospital with Haemophilus influenzae pneumonia. The infections responded promptly to the appropriate antibiotics on each occasion. When 16 months old, he developed balanitis. He is the fourth child of unrelated parents: his three sisters show no predisposition to infection. Examination at the age of...

You are going to receive $100 after one month, $110 after two months, $121 after three and four months, $133.1 after five months

You are going to receive $100 after one month, $110 after two months, $121 after three and four months, $133.1 after five months, $146.41 from month seven to month thirty. What is the present value of all these future cash inflows if the discount rate is 3%?

Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $210 into a...

Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $210 into a trust fund every six months until Robin was twenty-one years old. The trust fund provides for equal withdrawals at the end of each six months for three years, beginning six months after the last deposit. If interest is 6.9% compounded semi-annually, how much will Robin receive every six months? Robin will receive $_?. (Round the final answer to the nearest cent as needed. Round...

Starting three months after her grandson Robin's birth, Mrs. Devine made deposits of $115 into a...

Starting three months after her grandson Robin's birth, Mrs. Devine made deposits of $115 into a trust fund every three months until Robin was twenty-one years old. The trust funds provides for equal withdrawals at the end of each quarter for four years, beginning three months after the last deposit. If interest is 4.62% compounded quarterly, how much will Robin receive every three months? Robin will receive $ _____ (Round the final answer to the nearest cent as needed. Round...

Consider the following sample of the height of two cultivars of daisy, 2 months after planting...

Consider the following sample of the height of two cultivars of daisy, 2 months after planting (height in inches). We want to test to see whether there is a difference in average height between the two samples. Cultivar A Cultivar B 11.29 14.97 10.05 14.29 11.61 13.10 8.52 12.82 7.84 20.15 10.14 15.51 10.24 16.54 7.54 9.39 12.56 6.92 8.11 9.96 10.40 13.35 9.49 11.70 9.52 13.08 6.49 18.28 10.62 3.17 8.14 16.12 9.41 15.71 7.06 9.81 9.79 Mean 9.43...

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. No. Account Title Debit Credit 101 Cash $ 38,264 106 Accounts receivable 13,218 126 Computer supplies 2,545 128 Prepaid insurance 2,100 131 Prepaid rent 3,020 163 Office equipment 8,400 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 21,600 168 Accumulated depreciation—Computer equipment 0...

Question

Janet was born in Ireland but moved to Canada in 2016 two months after her 17th...

Solutions

Expert Solution

Related Solutions