During 2020, Raheem Sterling sold one of two rental properties that he owns (Rental #1). He sold the property for total proceeds of $500,000. The details of the sale of Rental #1 are as follows: Original cost U.C.C., January 1, 2019 Proceeds, June 30, 2019 Building (Class 3) $175,000 135,000 500,000 The proceeds received included $200,000 cash paid on June 30, 2020 and an interest-free mortgage for $300,000 with a three year term. Principal repayments of $100,000 are to be made on January 1 each year commencing January 1, 2021. At the end of the four-year term, the balance of the mortgage will be paid in full. Details of rental income for 2020 are as follows: #1 #2 $25,000 $ 15,000 Gross rent received.... Expenses: Mortgage interest..... Property taxes... Insurance... Maintenance. (3,000) (2,000) (8,000) (25,000) (3,500) (2,400) (1,500) Rental income (loss)............ $12,000 ($17,400) The undepreciated capital cost of Rental #2 (Class 1) was $83,236 on January 1, 2020. Required: Determine the impact on Richard's Net Income for Tax Purposes for 2020 as a result of the transactions above. During 2020, Raheem Sterling sold one of two rental properties that he owns (Rental #1). He sold the property for total proceeds of $500,000. The details of the sale of Rental #1 are as follows: Original cost U.C.C., January 1, 2019 Proceeds, June 30, 2019 Building (Class 3) $175,000 135,000 500,000 The proceeds received included $200,000 cash paid on June 30, 2020 and an interest-free mortgage for $300,000 with a three year term. Principal repayments of $100,000 are to be made on January 1 each year commencing January 1, 2021. At the end of the four-year term, the balance of the mortgage will be paid in full. Details of rental income for 2020 are as follows: #1 #2 $25,000 $ 15,000 Gross rent received.... Expenses: Mortgage interest..... Property taxes... Insurance... Maintenance. (3,000) (2,000) (8,000) (25,000) (3,500) (2,400) (1,500) Rental income (loss)............ $12,000 ($17,400) The undepreciated capital cost of Rental #2 (Class 1) was $83,236 on January 1, 2020. Required: Determine the impact on Richard's Net Income for Tax Purposes for 2020 as a result of the transactions above