Seneca College

FIN FSM511

Question Answered step-by-step 1.Eldrick is 48 years old and has been employed as a gas fitter for 21 years. During this period, there has not been any interruptions to his Canada Pension Plan (CPP) contributions. His wife Rhonda is 45 years old. The couple has two children: Perry, who is 23 years old and enrolled full-time in university and Samantha, who is 18 years old and has just started working full-time at a clothing store. Both children still live at home. Last week, Eldrick was seriously injured in a gas main explosion. Assuming, Eldrick's injuries are severe and prolonged as per the definition of total disability under the CPP, what statement is FALSE? a) Eldrick's CPP disability benefits will be calculated based on a flat-rate amount plus 75% of the retirement benefit he would have received at age 65. b) Should Eldrick die later this year, Rhonda would be eligible for a survivor's pension based on a flat-rate amount plus 37.5% of Eldrick's retirement pension. c) As children of a disabled contributor, both Perry and Samantha would be eligible to receive a pension under the CPP. d) Eldrick's CPP disability benefits will be subject to taxation. QUESTIONS 2 - 3 ARE BASED ON THE FOLLOWING INFORMATION: 2,Gunther and Maria are married. Maria is a cosmetic surgeon who earns $220,000 per year. Gunther is a technician for a cable company and earns $62,000 per year. Seven years ago, they purchased a house requiring