James Bond works for IBM as a computer consultant. He travels from plant to plant checking

the computer systems for IBM to keep them in order. James has provided you with the

following information related to his various investment holdings and his employment income as

of December $31,2023.$

$$500,000$ GIC purchased November $1,2022($interest payable at maturity on October $31,20\mathrm{.}25)$

Accrued interest from November $1,2022-$October $31,2023$

Accrued interest from January $1,2023$ December $31,2023$

Interest earned on his investment account $($not joint$)$ with his investment broker

Interest earned on $2022$ personal income tax assessment

$22,000$

$22,428$

$2,600$

$900$

Interest on short$-$term investments:

$$40,000$ term deposit taken out November $30,2023($interest at maturity in six months$)$

Accrued interest from December $1-$December $31,2023,$

Interest eamed on joint bank account with his spouse $($spouse contributes equally$)$

Government of Canada Treasury Bills purchased for $$14,009$ on January $3,2023$

Amount received on maturity on December $31,2023$

Cash dividends received from investment in common shares of Canadian Controlled private

corporations

Cash dividends received from common shares in US corporations $($net of $$4,000$ of foreign

withholding taxes; all in $CDN$)$

Rental details from operation of two separate rental properties:

Purchases made during $2023$ were as follows:

a$)$ A new office building was purchased for $$1,290,000.$ The cost of the land was $$370,000$

and the balance was allocated to the building. The owner rented the building so the

closing date $($date the owner took ownership$)$ of September $1^{st},2023,$ coordinated with

the new business tenants who occupied the building. The details of the operations are

listed above under Property $3.$ Property $1$ was sold during $2023.$ The closing date of the

sale was December $31,2023.$ The selling price was $$700,000$ and the original cost of

Property $1$ was $$530,000.$

b$)$ The company had James Bond sign a contract that he uses his own car for business

purposes for the company and he is required to pay directly all of the automobile

expenses. A passenger vehicle was purchased on May $1,2023,$ by James Bond which

the company he worked for signed a T$2200.$ The car was purchased on May $1,2023,$ at

a cost of $$30,000$ before HST $(13\%)$ and he drove it $19,000KM$ for business. His full

mileage for $2023$ was $24,000KM.$

The costs of the car, from May $1^{st}$ to December ${31}^{st},2023,$ are as follows:

Interest expenses paid during $2023$:

Interest on bank line of credit used for investing in shares described above

Interest on loan to acquire a car for his daughter for her ${18}^{th}$ birthday

Interest on a parcel of vacant land $($purchased in $2023,$ the land does not generate any income$)$

$$51,000$

$$9,500$

$28,000$

Based on above, James Bond has asked you to calculate his income for the year. He would

also like you to comment on the income tax implications of items not included in your

calculations.