After 29 years with ACME Manufacturing, Richard accepted a retirement package on December 31, 2001. He began working for ACME on January 2, 1973. The pension plan, which he joined in 1982, provided a pension of 2% for each year of plan membership, based on his earnings in his last five years and indexed to inflation. Richard's salary has been frozen at $67,000 for the last five years. His retiring allowance consisted of one week of pay for each year of employment and an allowance of six months' salary. If Richard transfers the maximum permissible amount of his retiring allowance into an RRSP, what amount of his retiring allowance must he receive in taxable income?
a) $10,365
b) $11,365
c) $12,365
d) $13,365
