Part A: Gross rental revenue Utilities Property taxes Repairs Mortgage interest UCC Property 1 $30,000 5,000 2,400 1,500 20,000 370,000 Property 2 $46,000 8,000 3.500 4,800 32,000 520,000 Required: 1) Calculate the total rental income from both properties. Part B: a Irene borrowed $140,000 at a 5.5% 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 Corporate bond (yield is 6% per annum) Preferred shares (4% annual dividend) purchased in RRSP Common shares (2% annual dividend) in spouse's name Paintings from well-known galleries Guaranteed Investment Certificate paying interest at 6% per annum Total cost $20,000 20,000 10,000 30,000 15,000 20,000 $140,000 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. Set up your answer using the following: Investment Explanation why deductible or not deductible Then, summarize the total cost of the investments that are deductible and calculate the total interest expense