Rental Income question:

At the end of the current year, Fred owned two residential rental properties.Rental property #1 cost $125,000 (land $50,000; building $75,000) and at the close of last year had a UCC of $64,000. Rental property #2 was acquired in the current year for $210,000 (land $80,000, building $130,000).Revenue and expenses for the rental properties during the year were as follows:

Property #1Property #2Total

Revenue $13,200$4,500$17,700

Expenses:

Mortgage interest(0)(3,000)(3,000)

Repairs & maintenance(5,000)(0)(5,000)

Property tax(3,100)(1,000)(4,100)

Insurance(500)(200)(700)

(8,600)(4,200) (12,800)

Income$ 4,600$300$4,900

Determine the maximum CCA deduction for the rental properties for the current year. Income tax reference:Reg. 1100(11), 1101(1ac).