User

Late in $2022,$ Ms$.$ Belle Theriot sells her Vancouver residence for $ $778$ comma $000.$ 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$1,2023,$ 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$197$ comma $000$ at a Canadian dollar cost of $ $341$ comma $000.$ Assume that throughout $2023,$ pound$1$equals$ $1\mathrm{.}70.$

$$B&B Mutual Trust Fund Units

She purchases $7$ comma $800$ units of the$$ B&B mutual fund trust at a cost of $ $35$ per unit.

Common shares of Lindenhurst Inc.

She purchases $1$ comma $500$ shares of Lindenhurst $$Inc$.,$ a publicly traded$$ company, at a total cost of $ $97$ comma $000.$

Tilton Mutual Trust Fund Units

She purchases $3$ comma $000$ units of Tilton Small$$ Cap, a mutual fund trust at a cost of $ $43$ per unit. The following transactions occur in the $2023$ taxation year.

Foreign Term Deposit

On December$31,2023,$ annual interest is paid at the rate of $8\%.$ 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 $ $1\mathrm{.}30$ per unit. $ $0\mathrm{.}40$ represents a return of capital with the remaining $ $0\mathrm{.}90$ a distribution of interest income. Belle invests the entire distribution in additional units at a cost of $ $56$ per unit.

Common shares of Lindenhurst Inc.

The Lindenhurst Inc. shares pay an eligible dividend of $ $1\mathrm{.}50$ per share.

Tilton Mutual Trust Fund Units

The fund has a distribution of $ $2\mathrm{.}30$ per unit. All of this distribution is reinvested to acquire additional Tilton units at $ $39$ per unit. The composition of the distribution is as follows.

Capital Gains

$$0\mathrm{.}30$

Eligible Dividends

$1\mathrm{.}00$

Interest

$1\mathrm{.}00$

Total Per Unit

$$2\mathrm{.}30$

Belle 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$31,2023.$ 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

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Maturity value of foreign term deposit $()$

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Exchange rate

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Interest on foreign term deposit

$\%$

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$=$