Martha Shine owned the following in 20x8:
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 1,20x8 was $50,000.
-The UCC on building 2,as of January 1,20x8 was $40,000.
-Property 2 was sold in 20x8 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 20x8 totaled $5,000.
Savings of $30,000
-Interest earned in 20x8 was $1,000.
Martha also worked full-time as a baker in 20x8,earning a gross salary of $45,000.
Martha is in a 45% tax bracket.
Required:
Calculate Martha's net income for tax purposes in 20x8 in accordance with Section 3 of the Income Tax Act.Martha will take the maximum CCA allowed this year on her rental properties.
Correct Answer:
Verified
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