December Mr. Shark ) Assignment Problem Seven - 7 estate. On January 1, 2020, she invests the funds as follows: Late in 2019, Ms. Betsy Cheung receives $1,000,000 in cash in settlement of her mother's Mutual Fund Units She acquires 4,000 units of Benson Small Cap, a mutual fund trust, at a price of $15 per unit. During 2020, the trust makes a distribution of $1.40 per a unit. The composition of this distribution is as follows: Capital Gains Eligible Dividends Interest Total Per Unit $0.50 0.70 0.20 $ 1.40 Betsy reinvests this distribution in new Benson Small Cap units at $16.50 per unit. She is still holding these units at the end of 2020. Income Trust Units Betsy acquires 14,000 units of Canfor Properties, an REIT. The units are acquired at a cost of $6.00 per unit. During 2020, the trust makes a distribution of $0.60 per unit. Of this total, $0.25 represents a return of capital, with the balance being property income. The proceeds of this distribution are invested in additional Cania units at a cost of $6.75 per unit. She is still holding these units at the end of 2020. Foreign Term Deposit Betsy acquires a Swiss franc denominated term deposit with a maturity value of 300,000 Swiss Francs (SF, hereafter). The Canadian dollar cost is C$387,000. On December 31, 2020, the principal amount of the term deposit is paid. along with interest of SF15,000. Foreign tax authorities withhold 20 percent of the interest. Assume that throughout 2020, SF1 = $1.29. Public Company Shares Betsy acquires 3,000 shares of BDE at a cost of $30 per share. During 2020, the shares pay her eligible dividends of $1.70 per share. On December 1, 2020, the shares are sold for $31.50 per share. CCPC Shares Betsy acquires 2,100 shares in her mother's Canadian controlled private company at a price of $65 per share from her estate. During 2020, these shares pay her non-eligible dividends of $3.50 per share. She is still holding these shares at the end of 2020. Betsy has other income that places her in the 33 percent federal tax bracket and 18 percent provincial tax bracket for any additional income. Taxes on that income are sufficient to use all of her available tax credits before considering the effects of the investments purchased with her inheritance. She lives in a province where the dividend tax credit on eligible dividends is 32 percent of the gross up, and on non-eligible dividends is 20 percent of the gross up. 339 Income From Property Assignment Problems Required: Calculate the amount of Taxable income and Tax Payable that will result from the base for each of the two trust units on December 31, 2020. Ignore any tax implications resulting dispositions and distributions of her investments. In addition, indicate the per unit adjusted cost from international tax treaties. December Mr. Shark ) Assignment Problem Seven - 7 estate. On January 1, 2020, she invests the funds as follows: Late in 2019, Ms. Betsy Cheung receives $1,000,000 in cash in settlement of her mother's Mutual Fund Units She acquires 4,000 units of Benson Small Cap, a mutual fund trust, at a price of $15 per unit. During 2020, the trust makes a distribution of $1.40 per a unit. The composition of this distribution is as follows: Capital Gains Eligible Dividends Interest Total Per Unit $0.50 0.70 0.20 $ 1.40 Betsy reinvests this distribution in new Benson Small Cap units at $16.50 per unit. She is still holding these units at the end of 2020. Income Trust Units Betsy acquires 14,000 units of Canfor Properties, an REIT. The units are acquired at a cost of $6.00 per unit. During 2020, the trust makes a distribution of $0.60 per unit. Of this total, $0.25 represents a return of capital, with the balance being property income. The proceeds of this distribution are invested in additional Cania units at a cost of $6.75 per unit. She is still holding these units at the end of 2020. Foreign Term Deposit Betsy acquires a Swiss franc denominated term deposit with a maturity value of 300,000 Swiss Francs (SF, hereafter). The Canadian dollar cost is C$387,000. On December 31, 2020, the principal amount of the term deposit is paid. along with interest of SF15,000. Foreign tax authorities withhold 20 percent of the interest. Assume that throughout 2020, SF1 = $1.29. Public Company Shares Betsy acquires 3,000 shares of BDE at a cost of $30 per share. During 2020, the shares pay her eligible dividends of $1.70 per share. On December 1, 2020, the shares are sold for $31.50 per share. CCPC Shares Betsy acquires 2,100 shares in her mother's Canadian controlled private company at a price of $65 per share from her estate. During 2020, these shares pay her non-eligible dividends of $3.50 per share. She is still holding these shares at the end of 2020. Betsy has other income that places her in the 33 percent federal tax bracket and 18 percent provincial tax bracket for any additional income. Taxes on that income are sufficient to use all of her available tax credits before considering the effects of the investments purchased with her inheritance. She lives in a province where the dividend tax credit on eligible dividends is 32 percent of the gross up, and on non-eligible dividends is 20 percent of the gross up. 339 Income From Property Assignment Problems Required: Calculate the amount of Taxable income and Tax Payable that will result from the base for each of the two trust units on December 31, 2020. Ignore any tax implications resulting dispositions and distributions of her investments. In addition, indicate the per unit adjusted cost from international tax treaties