Julio has a savings account in a foreign country. The account earned $5,000 interest during 2020 but he only received $4,500 since $500 for foreign taxes was withheld by the bank. All amounts are stated in Canadian dollars. The effect on Julio's 2020 tax return is:

	An increase in taxable income of $5,000 and a foreign tax credit of $500
	An increase in taxable income of $5,000 and a foreign tax credit of $75
	An increase in taxable income of $4,500 and a foreign tax credit of $0
	Nothing since the interest was earned outside of Canada