Question
In February 2015, Thomas acquired $150,000 worth of shares in a mutual fund established as a trust in his non-registered account. The net asset value
In February 2015, Thomas acquired $150,000 worth of shares in a mutual fund established as a trust in his non-registered account. The net asset value per unit (NAV) was then $19 and the acquisition costs were 2%.
In December 2016, he received a capital gain distribution of $0.75 per unit. The VLPP was then $20.
- What is the purchase price per unit for the 2015 purchase?
- How much tax will you pay for the December 2016 distribution, if Thomas's marginal tax rate is 40%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Calculating the purchase price per unit for the 2015 purchase The acquisition cost is given as 2 o...
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
