Kristin owns a rental property. She purchased the land for $200,000 and built the building at a time when construction costs were high. Her total cost for the building is $400,000. In the current year she sold the rental property for $450,000 (land $300,000; building $150,000). At the beginning of the year the UCC of the building was $320,000.
Determine the amount to be included in Kristin’s income with respect to the sale of the rental property. Income tax reference: ITA 13 (21.1).