Arnold Swartz converted his principal residence into a rental property after having lived in it for 5 years. He has not been able to find a tenant during the current year. The house had cost $1 million. At the time of conversion, the building had a fair market value of $1.4 million. What is the UCC balance in the rental property's Class 1 before any CCA is taken?

Select one:

A.

Nil

B.

$1,000,000

C.

$1,400,000

D.

$1,200,000

Clear my choice