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Taxation question please solve its important Investments On January 1, 2022, she invests the proceeds from the sale as follows. Foreign Term Deposit She acquires
Taxation question please solve its important
Investments On January 1, 2022, she invests the proceeds from the sale as follows. Foreign Term Deposit She acquires a U.K. Pound Sterling () term deposit with a maturity value of 198,000 at a Canadian dollar cost of $337,000. Assume that throughout 2022,1=$1.70. B\&B Mutual Trust Fund Units She acquires 7,900 units of the B\&B mutual fund trust. The units are acquired at a cost of $35 per unit. Common shares of Larchmont Inc. She acquires 2,100 shares of Larchmont Inc., a publicly traded company, at a total cost of $103,000. Teterboro Mutual Trust Fund Units She acquires 2,700 units of Teterboro Small Cap, a mutual fund trust. The cost is $42 per unit. 2022 Taxation Year Transactions The following transactions occur during the 2022 taxation year. Foreign Term Deposit On December 31,2022 , annual interest is paid at the rate of 7%. The U.K. authorities withhold 25% in income taxes with the balance paid to Belle. B\&B Mutual Trust Fund Units The fund makes a distribution of $1.40 per unit- $0.40 represents a return of capital with the remaining $1.00 a distribution of interest income. Belle invests the entire distribution in additional units at a cost of $51 per unit. Common shares of Larchmont Inc. The Larchmont Inc. shares pay an eligible dividend of $1.70 per share. Teterboro Mutual Trust Fund Units The trust has a distribution of $2.60 per unit. All of this distribution is reinvested to acquire additional Teterboro units at $37 per unit. The composition of the distribution is as follows. instead Vinw the irvesiments. Viow the transactions dring the 2022 taxalion yeat. Road the toquitement. Requirement pons (Round your answergi lo the nearest whole dolar). Celoulate the amount of adeitional taxable income and income tax payable that will result from the described distrbuutions. In addition, indicate the per-unit ACB for each of the bevo mutual trust units as of December 31, 2022 lgngre any income tax treaty implications Start by calculating the amount of additional taxable income that will result from the described distributions. (Round your answers to the nearest whole dollar.) B\&B Trust distribution Return of capital Subtotal Larchmont Inc. dividends Dividend gross up Subtotal Teterboro taxable capital gain Teterboro eligible dividends Dividend gross up Subtotal Temple interest Additional taxable income Investments On January 1, 2022, she invests the proceeds from the sale as follows. Foreign Term Deposit She acquires a U.K. Pound Sterling () term deposit with a maturity value of 198,000 at a Canadian dollar cost of $337,000. Assume that throughout 2022,1=$1.70. B\&B Mutual Trust Fund Units She acquires 7,900 units of the B\&B mutual fund trust. The units are acquired at a cost of $35 per unit. Common shares of Larchmont Inc. She acquires 2,100 shares of Larchmont Inc., a publicly traded company, at a total cost of $103,000. Teterboro Mutual Trust Fund Units She acquires 2,700 units of Teterboro Small Cap, a mutual fund trust. The cost is $42 per unit. 2022 Taxation Year Transactions The following transactions occur during the 2022 taxation year. Foreign Term Deposit On December 31,2022 , annual interest is paid at the rate of 7%. The U.K. authorities withhold 25% in income taxes with the balance paid to Belle. B\&B Mutual Trust Fund Units The fund makes a distribution of $1.40 per unit- $0.40 represents a return of capital with the remaining $1.00 a distribution of interest income. Belle invests the entire distribution in additional units at a cost of $51 per unit. Common shares of Larchmont Inc. The Larchmont Inc. shares pay an eligible dividend of $1.70 per share. Teterboro Mutual Trust Fund Units The trust has a distribution of $2.60 per unit. All of this distribution is reinvested to acquire additional Teterboro units at $37 per unit. The composition of the distribution is as follows. instead Vinw the irvesiments. Viow the transactions dring the 2022 taxalion yeat. Road the toquitement. Requirement pons (Round your answergi lo the nearest whole dolar). Celoulate the amount of adeitional taxable income and income tax payable that will result from the described distrbuutions. In addition, indicate the per-unit ACB for each of the bevo mutual trust units as of December 31, 2022 lgngre any income tax treaty implications Start by calculating the amount of additional taxable income that will result from the described distributions. (Round your answers to the nearest whole dollar.) B\&B Trust distribution Return of capital Subtotal Larchmont Inc. dividends Dividend gross up Subtotal Teterboro taxable capital gain Teterboro eligible dividends Dividend gross up Subtotal Temple interest Additional taxable income Step by Step Solution
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