Early last year, Hazel purchased 100 units of Sky mutual fund for $12 per unit. She received

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Early last year, Hazel purchased 100 units of Sky mutual fund for $12 per unit. She received a T3 from the fund for last year showing the following distributions from the fund, all of which were reinvested in her account resulting in the purchase of three additional units:

• Actual amount of eligible dividends………….       $30.00

• Taxable amount of eligible dividends………….    $41.40

• Capital gains………….………,..........….………….          $10.00

• Interest………….………….……...............………….          $ 8.00

On January 4th of the current year, Hazel sold 50 of her mutual fund units for $900.

Determine the taxable capital gain to be reported by Hazel in the current year. Income tax reference: ITA 47(1).

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Canadian Income Taxation Planning And Decision Making

ISBN: 9781259094330

17th Edition 2014-2015 Version

Authors: Joan Kitunen, William Buckwold

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