Arnold Swartz Converted His Principal Residence into a Rental Property

Arnold Swartz converted his principal residence into a rental property after having lived in it for 5 years. He has not been able to find a tenant during the current year. The house had cost $1 million. At the time of conversion, the building had a fair market value of $1.4 million. What is the UCC balance in the rental property's Class 1 before any CCA is taken?

A) $1,000,000
B) $1,200,000
C) $1,400,000
D) Nil