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Anne purchases a segregated fund contract for $75,000 which comes with a 75% guarantee. At...

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Finance

Anne purchases a segregated fund contract for $75,000 which comes with a 75% guarantee. At the end of the contract, the market value is $55,000. How much is her guarantee and how will it be taxed?

$20,000 and it will be offset by the capital loss so no tax will be payable

$1,250 and it will be offset by the capital loss so no tax will be payable

$20,000 and it will be taxed as interest income

$1,250 and it will be taxed as interest income

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