Dr. Jala Anderson has hired your professional services to file her income tax return. Dr. Anderson is a retired surgeon. Due to her failing eyesight, Jala was required to retire from her occupation at a younger age than normal. Fortunately, Jala has more than enough income to support herself as a result of years of receiving a very large salary as a surgeon and a family inheritance. Jala has invested most of her past employment earnings into a large portfolio which paid the following amounts during 2020 , the current year. Requirement 1. Compute Dr. Anderson's net property income for 2020. Fill in the table below to compute the net property income. (Round amounts to the nearest cent. Enter deductions with parentheses or a minus sign.) Additional info (part 1) \begin{tabular}{lr} \hline Item & Amount \\ Dividends from public Canadian corporations (subject to high corporate tax & $24,500 \\ rates): & \\ Dividends from private Canadian corporations (subject to low corporate tax & 32,500 \\ rates): & \\ Interest income received from Canadian sources: & 19,000 \\ Dividends from foreign corporations (translated into Canadian dollars): & 12,900 \end{tabular} Note: Total foreign dividends earned was $14,400 less foreign tax withheld of $1,500. Jala's portfolio of investments includes a five-year investment contract purchased three years ago on September 1 . The investment contract has a maturity value of $160,000 and an annual interest rate of 3%. The total interest earned on the investment contract will be paid on maturity on September 1, 2022, two years from now. Jala did not receive any interest (cash) from this investment contract in 2020. Jala's portfolio of investments is managed by a large Canadian brokerage firm called Top Notch Investments Inc. ("Top Notch") Top Notch charges Jala investment counsel fees of $5,300 during 2020. Additional info (part 2) In 2019, the previous year, Jala received a large family inheritance, which she invested into a rental property. The property was purchased in 2019 , and Jala has claimed the maximum amount of capital cost allowance (CCA) on the property in 2019. In 2020, the opening UCC balance in CCA Class 1 for the rental building is $345,000 and Jala would like to claim the maximum CCA deduction on the rental income in 2020 . The rental income and expense information for 2020 is as follows. To assist with filing her tax return, Jala provides you with detailed records from her bank. The documents indicate that Jala has borrowed the following amounts from her bank. - $180,000 mortgage on the rental property with principal repayments totalling $13,500 and interest payments of $6,700 for 2020 - $390,000 mortgage on Dr. Anderson's personal home with principal repayments totalling $18,000 and interest payments of $8,200 for 2020 - $140,000 loan used to purchase mutual funds with Top Notch Investments Inc. Jala paid interest of $4,800 on this loan during 2020 . - $46,500 loan used to purchase Jala's personal use vehicle. Jala paid $2,370 of interest on this loan during 2020
