Question
Question 3 chapter 6: 10 marks Irene owns two residential rental properties and purchased a third in 2020. Details related to the properties are as
Question 3 chapter 6: 10 marks
Irene owns two residential rental properties and purchased a third in 2020.
Details related to the properties are as follows:
Total rent received ($4,000 is a deposit in respect of next year) 24,000
Total expenses to earn rental income, excluding CCA 16,000
Building #1 opening UCC 72,000
Building #2 opening UCC 180,000
Proceeds of disposition on building #1 on April 30, 2020 120,000
Original cost of building #1 80,000
Cost of new rental building purchased on May 1, 2020 (land excluded) 250,000
Required:
Compute the minimum rental income for Irene in 2020 in respect of her rental operations.
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