Rental Activities One of James neighbours made several complaints about the noise coming from his shop. To resolve the conflict, James and Susan decided to acquire the neighbour's home jointly and rent it out. The home was acquired on July 1, 2017 and immediately leased for a 2-year period to a new tenant with occupancy as of August 1, 2017. The following information relates to the rental home for 2017, which is shared equally between James and Susan (50% each): Address: 121 Main Street, Anytown, ON (co-owned by James and Susan equally, 50% each) Cost of home purchased: $275,000 of which $55,000 was allocated to the land. Cost of additions made to the building in 2017 (built a new garage): $80,000. Revenues Gross Rents (August to December) $20,000 Expenses Property taxes $2,000 Insurance 900 Interest on mortgage 6,025 Mortgage principal 1,525 Regular maintenance & repairs 3,500 In order to finance part of the purchase price for the rental property, James and Susan decided to sell their personal cottage that they also jointly owned (50%