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Mr. Bond works with MI-5 Ltd. On December 31, 2022 Mr. Bond expected his 2022...

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Accounting

Mr. Bond works with MI-5 Ltd. On December 31, 2022 Mr. Bond expected his 2022 income for tax purposes to be as follows:

Employment Income $54,000

Employee stock option benefits $8,000

Income from carrying on a business $21,000

Taxable Capital gains $5,000

Losses from rental of apartment (5,800)

Royalty income from books written by Mr. Bond 10,200

Interest income 18,000

Total income $110,400

Additional Information

1. Bonds 2022 employment income is net of an RPP contribution of $7,300. His pension adjustment from 2022 was $13,000. He anticipates a pension adjustment of $15,000 in 2023. Mr. Bond has always in the past contributed less than was required for RRSP.

2. Bond paid alimony payment of $12,000 during 2022 to the former Mrs. Bond.

3. At the end of 2022 Mr. Bond has unused RRSP deduction room from prior years of $8,900.

Mr. Bond has asked you to do the following:

A. Determine the maximum RRSP deduction that Mr. Bond can make for the 2023 taxation year. Remember to show all your work to get full marks.

B. What additional planning step would you advise him to take in connection with his RRSP in 2023?

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