Question) Rocky is operating rental business. The details from operation of two separate rental properties are as follows: Property 1 Property 2 Gross Rental Revenue $ 30,000 $ 46,000 Utilities 5,000 8,000 Property Taxes 2,400 3,500 Depreciation 4,200 5,600 Repairs 1,500 4,800 Mortgage Interest 20,000 32,000 The properties are in Class 1, 4% at the end of the year. The opening balance of UCC of $368,209 $520,225 for property 1 and property 2 respectively. Required: Compute the rental income to be included in Rocks tax return for 2020.

Question) Maddy and Ronny are friends working at Lablas Inc., Public Company and Dom Inc., CCPC respectively. Both corporations offered identical stock options were as follows. In 2017, they were granted options to acquire 1,000 shares of their employers common stock at a price of $20 per share. At the time the options were granted, the shares were trading at $23 per share. In January 2018, when the shares are trading at $45 per share, they exercised their options and acquired 1,000 shares. In February 2020, the shares were sold when the market price was $55. Required: Compare the tax effects of these transactions for 2018, 2019 and 2020 for the friends at the taxable employment income level.