Thato Smit owns rental properties originally valued at $275,000. (Property 1: 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 $50,000. · The UCC'on building 2 at the beginning of 2020 was $40,000. Property 2 was sold in 2020 for $250,000 (land $200,000, building $50,000) Thato incurred costs during the year for repairs ($1,100), taxes ($2,500) and utilities ($3,500). Calculate Thato's net rental income income for tax purposes. Thato llowed this vear on the rental

Thato Smit owns rental properties originally valued at $275,000. (Property 1: 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 $50,000. · The UCC'on building 2 at the beginning of 2020 was $40,000. Property 2 was sold in 2020 for $250,000 (land $200,000, building $50,000) Thato incurred costs during the year for repairs ($1,100), taxes ($2,500) and utilities ($3,500). Calculate Thato's net rental income income for tax purposes. Thato llowed this vear on the rental

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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