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Problem1 : Dwayne Brooks is self employed and, because of the high level of his income, is required to make a 2020 CPP contribution of $5,796 [(2)($2,898)]. How will this affect his 2020 Net Income For Tax Purposes and his 2020 Taxable Income?
a) Both his Net Income For Tax Purposes and his Taxable Income will be reduced by $5,796.
b) Both his Net Income For Tax Purposes and his Taxable Income will be reduced by $3,064.
c) Neither his Net Income For Tax Purposes nor his Taxable Income will be affected.
d) Both his Net Income For Tax Purposes and his Taxable Income will be reduced by $869.
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