Catherine Steele owns two rental properties originally valued at $275,000 (Property 1t land $70,000, building $55,000) (Property 2 land $90,000, building$60,000)The buildings are Class 1 (4%) properties. Net rental income before CCA in 2020 was $11,000• The UCC on building 1 at the beginning of 2020 was $50,00o.• The UCC on building 2 at the beginning of 2020 was $40,000• Property 2 was soid in 2020 for $250,000 (land $200,000, bulding $50,000)RequiredCalculate Catherine's net rental income for 2020 then subtract the allowable CCA to arrive at her Net Income from rental propertyNumeric Response

Net Income:-Net income is also defined as net earnings of the business, which is calculated by…

Catherine Steele owns two rental properties originally valued at $275,000 (Property 1 land $70,000, bulding $55,000) (Property 2 land $90,000, bulding $60,000) The buldings are Class 1 (4%) properties. Net rental income before CCA in 2020 was $1,000 • The UCC on building 1 at the beginning of 2020 was $50,000. • The UCC on building 2 at the beginning of 2020 was $40,000. • Property 2 was soid in 2020 for $250.000 (land $200.000, bulding $50,000) Resulredt Calculate Catherine's net rental income for 2020 then subtract the allowable CCA to arrive at her Net Income from rental property Numeric Response

Catherine Steele owns two rental properties originally valued at $275,000 (Property 1 land $70,000, bulding $55,000) (Property 2 land $90,000, bulding $60,000) The buldings are Class 1 (4%) properties. Net rental income before CCA in 2020 was $1,000 • The UCC on building 1 at the beginning of 2020 was $50,000. • The UCC on building 2 at the beginning of 2020 was $40,000. • Property 2 was soid in 2020 for $250.000 (land $200.000, bulding $50,000) Resulredt Calculate Catherine's net rental income for 2020 then subtract the allowable CCA to arrive at her Net Income from rental property Numeric Response

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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