Prepare a calculation of johns property income for taxation


John Ingles has provided you with the following information related to his various investment holdings as of December 31, 2016.

Interest earned on joint bank account with his spouse (spouse contributes equally) $ 2,000

Interest earned on his investment account (not joint) with his investmentbroker             800

Interest earned on 2015 personal income tax assessment . . . . . . . . . . . . . . . .                       450

Interest on short-term investments:

$20,000 term deposit taken out November 30, 2016 (interest at maturity insix months)

Accrued interest from December 1 to December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . .                                          85

$200,000 GIC purchased November 1, 2015 (interest payable at maturity onOctober 31, 2018)

Accrued interest from November 1, 2015 to October 31, 2016 . . . . . . . . . 16,000

Accrued interest from January 1, 2016 to December 31, 2016 . . . . . . . . .16,214

Government of Canada Treasury Bills purchased for $9,009 on December 31,2015 and amount

received on maturity on December 31, 2016 . . . . . . . . . . . . . . . . 10,000

Cash dividends received from investment in common shares of Canadian resident public corporations          24,000

Cash dividends received from common shares in US corporations (net of $3,000of foreign Taxes; $CDN). . . 17,000

Rental details from operation of two separate rental properties (both under class 1):

Property 1                           Property 2

Gross rental revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000                                $ 46,000

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000                                 8,000

Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400                                3,500

Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500                                 4,800

Mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000                                32,000

Opening UCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $368,209                 $520,225

Interest expenses paid during 2016:

Interest on bank line of credit used for investing in shares described above                                         $50,000

Interest on loan to acquire an automobile for his daughter for her 18thbirthday  . . . . . . . . . . . . . . . . 3,200

Interest on a parcel of vacant land (purchased in 2009, the land does notgenerate any income) . . 10,000

-REQUIRED

Prepare a calculation of John's property income for Taxation Year 2016. Comment on the income tax implications of itemsnot included in your calculations.

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Accounting Basics: Prepare a calculation of johns property income for taxation
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