Late in

$20222022,$

Ms$.$

BaileyBailey

TrottierTrottier

sells her Vancouver residence for

$ $782$ comma $000$$$782,000.$

It is her intention not to replace this$$ property, and, in future$$ years, she plans to rent a unit in a condominium instead.On January$1,$

$20232023,$

she invests the proceeds from the sale as follows.

Foreign Term Deposit

She purchases a U$.$K$.$ Pound Sterling

$($pound$)$

term deposit with a maturity value of

pound$203$ comma $000203,000$

at a Canadian dollar cost of

$ $342$ comma $000$$$342,000.$

Assume that throughout

$20232023,$

pound$1$equals$=$$ $1\mathrm{.}70$$$1\mathrm{.}70.$

$$B&B Mutual Trust Fund Units

She purchases

$7$ comma $5007,500$

units of the$$ B&B mutual fund trust at a cost of

$ $33$$$33$

per unit.

Common shares of

LucasvilleLucasville

Inc.

She purchases

$1$ comma $8001,800$

shares of

LucasvilleLucasville

$$Inc$.,$ a publicly traded$$ company, at a total cost of

$ $96$ comma $000$$$96,000.$

TimberTimber

Mutual Trust Fund Units

She purchases

$2$ comma $2002,200$

units of

TimberTimber

Small$$ Cap, a mutual fund trust at a cost of

$ $42$$$42$

per unit.The following transactions occur in the

$20232023$

taxation year.

Foreign Term Deposit

On December$31,$

$20232023,$

annual interest is paid at the rate of

$66\%.$

The U$.$K$.$ authorities withhold$25\%$ in income taxes with the balance paid to

BaileyBailey.

$$B&B Mutual Trust Fund Units

The fund makes a distribution of

$ $1\mathrm{.}40$$$1\mathrm{.}40$

per unit.

$ $0\mathrm{.}60$$$0\mathrm{.}60$

represents a return of capital with the remaining

$ $0\mathrm{.}80$$$0\mathrm{.}80$

a distribution of interest income.

BaileyBailey

invests the entire distribution in additional units at a cost of

$ $53$$$53$

per unit.

Common shares of

LucasvilleLucasville

Inc.

The

LucasvilleLucasville

Inc. shares pay an eligible dividend of

$ $1\mathrm{.}70$$$1\mathrm{.}70$

per share.

TimberTimber

Mutual Trust Fund Units

The fund has a distribution of

$ $2\mathrm{.}60$$$2\mathrm{.}60$

per unit. All of this distribution is reinvested to acquire additional

TimberTimber

units at

$ $37$$$37$

per unit. The composition of the distribution is as follows.

Capital Gains

$$0\mathrm{.}60$

Eligible Dividends

$1\mathrm{.}00$

Interest

$1\mathrm{.}00$

Total Per Unit

$$2\mathrm{.}60$

BaileyBailey

has other income that places her in the$29\%$ federal income tax bracket. Tax on this income is sufficiently high that she is able to use all her available personal tax credits before considering the effects of the investments described above. She resides in a province where the applicable income tax rate is$16\%,$ and the dividend tax credit on eligible dividends is$30\%$ of the gross up$.$Calculate the amount of additional taxable income and income tax payable that will result from the distributions. In$$ addition, indicate the$$ per$-$unit ACB for each of the two mutual trust fund units as of December$31,$

$20232023.$

Ignore any$$ GST$/$HST & PST considerations and any income tax treaty implications. Start by working on the additional taxable income. In this$$ step, calculate the interest on the foreign term deposit. $($Round your answer for the exchange rate to the nearest$$ cent.$)$ Interest rate $$ Maturity value of foreign term deposit $()$ Exchange rate $=$ Interest on foreign term deposit $\%=$ Part $2$Next$,$ calculate the excess withholding on the term deposit. $($Round your answer for the exchange rate to the nearest cent. Round your final answer to the nearest whole$$ dollar.$)($ Foreign income tax rate $-$ Foreign tax credit rate $)$ Interest rate $$ Maturity value of foreign term deposit $()$ Exchange rate $=$ Excess withholding $(\%-\%)\%=$ Part $3$Here$,$ calculate the eligible dividends from Lucasville Inc. and Timber. $($Round your answer for the dividends per unit to the nearest$$ cent.$)$ Investment Number of units $$ Dividends per unit $=$ Dividends Lucasville Inc. $=$ Timber $=$ Part $4$Next$,$ calculate the dividend gross up from Lucasville Inc. and Timber. $($Round your answers to the nearest whole$$ dollar.$)$ Investment Dividends $$ Dividend gross up rate $=$ Dividend gross up Lucasville Inc. $\%=$ Timber $\%=$ Part $5$Now$,$ calculate the taxable capital gain from the Timber mutual trust fund units. $($Round your answer for the capital gains per unit to the nearest cent. Round your final answer to the nearest whole$$ dollar.$)$ Inclusion rate $$ Number of units purchased $$ Capital gains per unit $=$ Timber taxable capital gains $=$ Part $6$Next$,$ calculate the amount of additional taxable income that will result from the described distributions. $($Round your answers to the nearest whole$$ dollar.$)$ Interest on term deposit Excess withholding of term deposit Subtotal B&B Trust distribution Return of capital Subtotal Lucasville Inc. dividends Dividend gross up Subtotal Timber eligible dividends Dividend gross up Subtotal Timber taxable capital gain Temple interest Additional taxable income