Brenda contributes $2,000 to her grandchild's RESP. The grandchild's family net income is above the threshold for the Additional CESG. What is the total CESG Brenda's grandchild will receive this year, assuming there is sufficient lifetime room and no carry-forward room is needed to meet the basic grant limit?

Question: Brenda contributes $2,000 to her grandchild's RESP. The grandchild's family net income is above the threshold for the Additional CESG. What is the total CESG Brenda's grandchild will receive this year, assuming there is sufficient lifetime room and no carry-forward room is needed to meet the basic grant limit?

Answer options:

• $300 ✅ $400
• $500
• $600

Correct answer: $400

Explanation: The basic CESG is 20% on the first $2,500 of annual contributions. Therefore, a $2,000 contribution will attract 20% * $2,000 = $400 in CESG. The family income threshold for Additional CESG is not met, so only the basic grant applies.