On January 1, 2019, John Traverse acquires 12,000 units of the RV Income Trust at a cost of $720,000

Taxation May 04, 2021

On January 1, 2019, John Traverse acquires 12,000 units of the RV Income Trust at a cost of $720,000.  During 2019, the trust makes a distribution of $5.00 per unit.  Of this total $1.50 is a return of capital while the remaining $3.50 is property income.  John reinvests the total distribution in RV units at a cost of $55 per unit.  What is the adjusted cost base of John’s units on December 31, 2019?

		
$58.21 per unit.

		
$59.58 per unit.





		
$53.62 per unit.







		
$60.00 per unit.

Expert Solution

59.58

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