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#2) (5 Marks) Mr. Anderson owns two rental buildings which had the following revenues and expenses in 2017 and the indicated U.C.C. at the beginning
#2) (5 Marks) Mr. Anderson owns two rental buildings which had the following revenues and expenses in 2017 and the indicated U.C.C. at the beginning of the year: Building 1 Class 1 (4%) $244,000 Building 2 Class 1 (4%) $22,000 UCC: January 1, 2017 $161,000 $46,000 Revenue Expenses: Interest Property Taxes Other Allowable Expenses $40,000 $35,000 $109,000 $5,000 $7,000 $22,000 Building 2 was sold during 2017: Sales Price of Building #2 $40,000 Purchase Price of Building #2 $52,000 (for simplicity ignore the cost of the land) REQUIRED: Compute the Net Rental Income or Net Rental Loss that Mr. Anderson will report on his 2017 Income Tax Return. Assume that Mr. Anderson wishes to claim the maximum amount of C.C.A. that is allowed under the Income Tax Act. Show all calculations including the completion of the CCA schedule(s)
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