Part A: Each property is residential Property 1 Property 2 Property 3 Gross rental revenue $30,000 $55,000 $46,000 Utilities 5,000 7,500 8,000 Property taxes 2,400 2,200 3,500 Repairs 1,500 1,800 4,800 Mortgage interest 7,500 5,500 6,800 UCC 370,000 540,000 520,000 Sold proceeds 780,000 Capital cost 675,000 Required: 1) Calculate the total rental income from all properties. Remember to consider items not in the list above (i.e. recapture and CCA) Part B: Irene borrowed $115,000 at a 4% annual interest rate from a local financial institution to finance the following investments. Cost of each investment is noted below: Common shares of a public corporation paying no dividends $20,000 Corporate bond (yield is 6% per annum) 20,000 Preferred shares (4% annual dividend) purchased in RRSP 10,000 Common shares (2% annual dividend) in spouses name 30,000 Paintings from well-known galleries 15,000 Guaranteed Investment Certificate paying interest at 6% per annum 20,000 Total cost $115,000 Required: Assuming that the investments were held for the full calendar year, determine the deductibility of interest expense for each investment. Remember that deductibility depends on usage of the loan. Set up your answer using the following: Investment Type Deductible Y or N Explanation why deductible or not deductible Then, summarize the total cost of the investments that are deductible and calculate the total interest expense.