Reference no: EM132465551

ACCT 315 - Intermediate Financial Accounting Assignment - Southern Alberta Institute of Technology, Canada

Question - You were prudent with your money starting early on in your career and you can now live on your property income. You have the following receipts this year:

You own two rental properties.

Revenue Expenses

Property A

Cost $44,000 building $50,000 land UCC $35,000

$34,000

$22,000, including $6,000 to reshingle the asphalt shingle roof.

Property B

Cost $49,000 building $42,000 land UCC $35,000

Sold 2018

Building $50,000

Land $60,000

Commission & legal fees $3,000

$10,000

$27,000

You have various investments that generate interest income.

Interest of $2,000 received each quarter on an investment in bonds. The 25-year bond matures in 20 years and the interest is received on February 1, May 1, August 1 and November 1.

On May 1, 2018, you invested $55,000 in another GIC that will mature in three years. The GIC pays 5% interest compounded monthly.

You have invested in shares in order to receive dividend revenue, as well as capital gains. You have received the following dividends this year:

$12,000 in dividends received from a CCPC that receives the small business deduction on all their income.

$10,000 in eligible dividends received from a large public corporation.

You received $45,000 from the sale of shares on May 10, 2018. On January 1, 2018, you held 10,000 shares in this corporation. The shares had an average cost of $5.00 per share. On May 10, 2018, you sold 9,500 shares and paid a brokerage fee of $200.00.

In July, 2018 you sold a painting to your neighbor. The original cost was $10,000. You sold the painting for $14,000.

Required - Calculate your net income (Division B income).