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Yang Owns 800 Units in a Mutual Fund That Invests

Question 7

Multiple Choice

Yang owns 800 units in a mutual fund that invests exclusively in the shares of Canadian public corporations. During 2020, the fund paid a distribution of $1.50 per unit. One-half of the distribution was eligible dividend income and the remaining half was capital gains. By how much will Yang's Taxable Income increase as a result of the distribution?


A) $600.
B) $1,128.
C) $1,200.
D) $1,428.

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