After five year of executive successful carrier, you decide in 2021to start investing in the financial markets. The investments, along with their results during the year ending December 31, 2021, are as follows:

Investment #1 - Canadian Mutual Trust Fund - CMTF

You acquired  20,000 units at a cost of $10 per unit. During 2021, CMTF makes a distribution of $0.75per unit. Of this total, $0.30 represents a return of capital, with the balance being interest income. The proceeds of this distribution are invested in additional units at a cost of $11.75 per unit. She continues to own the units at December 31, 2021.

Investment #2 - Public Company Shares - PCS

You acquired 7,000 shares of ETA, a Canadian public company at a cost of $30 per share. During 2021, the shares pay eligible dividends of $.90 per share. On December 31, 2021, the shares are sold for $35 per share.

Investment #3 - Foreign Term Deposit - FTD

On January 1, 2021 you acquired a USD Deposit with a maturity value of USD 100,000 for Canadian Dollar 122,000. On Dec 31, 2021 the principal along with USD 9,000 interest was paid. The foreign income taxes withheld was 18% of the interest. Assume an average exchange rate during the year of 1USD=1.2 CAD

Investment #4 - Premium Mutual Fund - PMF

You acquired 6000 units of PMF at $25 per unit. In 2021 the following distributions of $ 2.5 were made:

 

Capital Gain

1.2

Eligible Dividends

.8

Interest

.5

Total Per Unit

2.5

We decided to reinvest the distributions in the funs at $26.5 per unit.

 

This additional investment income will be subject to a federal income tax rate of 29% and a 16% provincial income tax rate. You live in a province where the dividend tax credit on eligible dividends is 30% of the gross up, and on non-eligible dividends is 25% of the gross up.

 

Required

1. Determine the amount of additional taxable income and income tax payable as a result of the investments.
2. In addition, calculate the per unit ACB of both the CMTF and PMF mutual trust funds on December 31, 2021.