Question

Mr.Chapman owns units in Dumark Mutual Fund.He received a T3 slip from Dumark Mutual Fund indicating the following income amounts allocated to his account and reinvested in 2019:

Capital gains ................... .............$1,200

Actual amount of dividends ........................347

Taxable amount of dividends .......................500

Mr. Chapman had invested $20,000 in the Dumark Fund in 2018. This resulted in the purchase of 1,640.824 units of the fund. In 2018, income of $46.31 was allocated to his account and reinvested. The reinvestment resulted in the purchase of 3.845 units at the market value of $12.044 per unit. The 2019 income allocation resulted, on reinvestment of the $1,544.97, in the purchase of 119.358 units at the market value of $12.944 per unit. Late in 2019, after the income allocation, Mr. Chapman sold 1,000 units for a total of $12,881.

How would this affect Division B income for Mr Chapman?

Answer 1