You hold 1,000 units of Calgary Commercial Property,a real estate investment trust (REIT) .500 of those units are held inside a tax-free savings account,the other 500 are outside the tax-free savings account.The REIT announces a profit of $10 per share,of which it retains $4 for reinvestment and distributes the rest as dividend payments.Given your personal tax rate of 30%,and the tax rate on dividends is 15%,how much tax must you pay on your holdings?
A) $900
B) $450
C) $1,800
D) $1,500
E) $1,600
Correct Answer:
Verified
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