On 1 July 2021 an investor purchased a foreign corporate bond with a maturity date of 30 June 2026, a face value in Canadian dollars of $100,000 and interest rate of 5%. Payments have been received in 2021, 2022 and 2023, net of a withholding tax of 15%.

On 1 July 2021 the investor also purchased a Canadian corporate bond with a maturity date of 30 June 2025, a face value of $200,000 and interest rate of 4%. All interest will be paid at maturity.

How much interest income will be included in the investor's 2023 income tax return?

Answer rating: 100% (QA)

Interest Income for 2023 Tax Return Foreign Bond Annual gross interest ... View the full answer