Anne purchases a segregated fund contract for $75,000 which comes with a 75% guarantee. At the end of the contract, the market value is $55,000. How much is her guarantee and how will it be taxed?

		$1,250 and it will be taxed as interest income
		$20,000 and it will be offset by the capital loss so no tax will be payable
		$20,000 and it will be taxed as interest income
		$1,250 and it will be offset by the capital loss so no tax will be payable