Ken Potman is the sole shareholder in Brickbase Enterprises Ltd., a Regina-based construction company. He is also a 35% partner in a retail kitchenware store, although he does not actively participate in its management. The following information relates to Ken's financial affairs for the year 2023. 1. Brickbase was organized three years ago. For its year ending May 31, 2023, the company earned a profit of $88,000. Ken originally contributed $200,000 to the corporation, using $50,000 of his own savings and funding the balance with a bank loan. In return, the corporation issued Ken $1,000 worth of common shares and $199,000 of preferred shares. In 2023, the company paid a dividend of $16,000 on the preferred shares. All of Brickbase's income is subject to the small business deduction. 2. During the year, Ken sold a warehouse property for $180,000 (land - $15,000, building - $165,000). Brickbase used the building to store construction equipment and the company paid Ken a fair rental for use of the property. The property was originally purchased at a cost of $140,000 (land - $10,000, building - $130,000). At the end of 2022 the building had an undepreciated capital cost of $110,000. At the same time as the sale, Ken purchased a larger warehouse property (constructed after March 18, 2007), which was also rented to Brickbase. The new property cost $400,000 (land - $50,000, building - $350,000). During the year, the company paid Ken net rents of $39,900 for both properties. The new property was financed with the proceeds from the sale of the old building as well as mortgage financing. 3. The retail store partnership earned $40,000 for its year ending December 31, 2023. The profit consisted of a $32,000 profit from operations and $8,000 of interest income earned on excess undistributed cash deposits. 4. Ken's other cash receipts and disbursements for 2023 are shown in the following chart. Receipts: Salary from Brickbase $82,500 Dividends from Canadian public corporations Dividends from foreign public corporations (net of 10% foreign withholding tax) Winnings from provincial lottery Interest on a loan to his daughter Disbursements: Contribution to Brickbase employee pension plan Investment counsel fees 8,000 9,900 2,000 1,000 4,000 1,000 Legal fees for registering mortgage on new warehouse 5,000 Life insurance premium on policy required as collateral for the bank loan used to purchase Brickbase shares Interest on warehouse building mortgage 1,000 27,900 Interest paid on house mortgage (The house mortgage is $100,000, of which $70,000 was used to acquire the house. The balance was used to purchase public corporation shares.) Interest on bank loan (re: Brickbase shares) 10,000 20,000 4,000 Donations to local charity Safety deposit box fees 5. On July 1 2022 Ken purchased a four-year guaranteed investment certificate for $30,000 that bears interest at 8%. The interest compounds annually but is not payable until the end of the four-year term. Ken did not include any amount of interest in his 2022 income. 6. During the year, one of the Canadian public corporations of which Ken is a shareholder issued him 100 additional shares as a stock dividend. The shares had a stated value of $44 per share. Ken placed the shares in his safety deposit box along with his other securities. 100