Kawartha Ltd. is a Canadian-controlled private corporation owning a portfolio of investments including stocks, bonds, and rental properties. The financial statements for the year ended June 30, 2021, show a profit of $104,300, summarized as follows: Hond interest Taxable dividends from Canadian corporations Gain on sale of assets Rental loss Income before income taxes 550.000 20.000 40.000 (5.700) $104.300 H30 Additional financial information is outlined below 1. The previous year's corporation tax return includes the following tax account balances Uweperatelacar Class 1 building A Class 1: building B Class 1: truilding $126.000 35.000 46,000 2 Taxable Canadian dividends totalling $20,000 include $8,000 from public corporations and $12,000 from X led, a Canadian-controlled private corporation, Kawartha owns 30% of X Lid's common shares 3. The rental properties were purchased prior to March 18, 2007, as follows: Land cost Building cost $ 20,000 $35.000 120.000 40.000 SI50.000 S75.000 $21.000 49.000 $70.000 On February 28, 2021. property A was sold for $170.000 and $30,000, building $140,000) and property B was sold for $77000 and $40.000, building $37.000) The combined rentals resulted in a loss of $5.700 after deducting amortization/depreciation of $3,000 for the year ended June 30, 2021. The rentat revenue includes a $1,000 rental deposit applied to the last two months rent on a lease expiring December 31, 2022 For the year ended June 30. 2020. Kawartha deducted a reserve for unpaid rents of $2.000. In January 2021. $1.000 of the unpaid rents was received and credited to the rent receivable account. No reserve has been claimed at June 30, 2021: however, S1,200 of the current year's rents remain unpaid. Required: Determine Kawartha's net income for tax purposes for the 2021 taxation year