Martha Shine Owned the Following in 20X4

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 totalled $5,000.
• Savings of $30,000
-Interest earned in 20X4 was $1,000.
Martha also worked full-time as a baker in 201X4,earning a gross salary of $45,000.
Martha is in a 40% tax bracket.
Required:
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:

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