Martha Shine owned the following in 20X4:
-Rental properties originally valued at $275,000 (Property 1: land $70,000, building $55,000) (Property 2: land $90,000, building $60,000)
-Net rental income before CCA was $11,000.
-The UCC on building 1, as of January 1, 20X4 was $50,000.
-The UCC on building 2, as of January 1, 20X4 was $40,000.
-Property 2 was sold in 20X4 for $250,000 (land $200,000, building $50,000)
-Shares in ABC Inc. (a CCPC) valued at $50,000
-Non-eligible dividends paid to Martha in 20X4 totaled $5,000.
-Savings of $30,000
-Interest earned in 20X4 was $1,000.
Martha also worked full-time as a baker in 20X4, earning a gross salary of
$45,000.
Martha is in a 45% tax bracket. Required:
Using the Aggregate Formula, calculate Martha's net income for tax purposes in 20X4. Assume that Martha will take the maximum CCA allowed this year on her rental properties.
Correct Answer:
Verified
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