An investor in a non-registered account earns $1,000 in interest from a bond, $1,000 in eligible dividends from a Canadian corporation, and realizes a $1,000 capital gain from selling a mutual fund. Which of the following statements correctly describes the tax treatment of this income?
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A
The interest income is fully taxable, the eligible dividends receive a tax credit, and only 50% of the capital gain is taxable.
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B
All three types of income are taxed at the same marginal tax rate.
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C
The capital gain is tax-free, while the interest and dividend income are fully taxable.
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D
The dividend income is tax-free, the capital gain is fully taxable, and 50% of the interest income is taxable.