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This video tutorial demonstrates how to use the Canvas annotation tool for annotating a reading assignment. The presenter accesses the assignment titled "Don't Multitask" and explains that the annotation can be initiated by clicking the Annotation button. This opens the reading assignment, providing tools for annotation. The presenter copies a question from the assignment for reference and emphasizes the importance of making notes directly on the article rather than on a separate paper. Annotations can be made using different methods, such as point or highlight annotations, by clicking on relevant sections of the article.