income tax question attached need to calculate division income

need to calculate division income

Lisa Simpson, a self-employed consultant, has asked for your assistance in preparing her tax return for the year ended December 31, 2016. She has provided you with the following revenue, expenses and other information related to the activities of the business: Gross consulting fees received $ 155,000 Assistant's salary (part-time) 25,500 Liability insurance expense 5,000 Office expenses 1,200 Office equipment 1,000 Automobile expenses (1) 1,000 Interest expense (loan for business use) 10,500 Professional courses (to maintain skills) 1,400 Beginning undepreciated capital cost: Office equipment (Class 8) 10,500 Automobile (Class 10.1) (1) 20,000 (1) During the year, Jessica drove her automobile 30,000 kilometres, of which 15,000 kilometres were for business purposes. Lisa owns two residential rental properties. The details of each property are as follows: Property A Property B Original cost $ 300,000 $ 400,000 UCC on January 1 95,000 120,000 Rental revenue 15,000 20,000 Mortgage interest 8,000 15,000 Property taxes 3,000 4,000 Operating expenses 1,000 6,000 During year, Lisa sold property B for $500,000, incurring real estate commissions of $11,000. The allocation between land and building is 65% and 35%, respectively. During the year, Lisa sold shares of Canadian Cable Systems Inc. (a Canadian public company) for $40,000. Her adjusted cost base was $32,000. Prior to selling the shares, she received dividends of $600. She also sold a coin collection for $1,500, which had a cost of $800, and an antique set of golf clubs that cost $500 for proceeds of $300. In January, Lisa sold both her existing home and a vacation cottage to purchase a single larger residence in the city. Details of the sold properties are as follows: House Cottage Year of purchase 2005 2010 Cost $ 400,000 $ 250,000 Selling price 500,000 375,000 Real estate commissions 19,500 15,300 Required: Calculate Lisa's minimum Division B income (net income for tax purposes) for the year ended December 31, 2016. Clearly identify income from business, property (rental separate), and taxable capital gains. Show all calculations whether or not necessary to the final