$98$

Questions $95-100$ are based on the following information:

Gordon had a full$-$time job as a sales manager for a meat wholesaler. Last year, he earned a salary of $$85,000$; he also received a bonus of $$10,000$ on March $31$ st of this year based on his excellent performance last year. He is a member of his employer's defined$-$benefit pension plan and he is required to contribute $5\%$ of his base salary to the plan each year. In addition to his salary, bonus and pension plan, he enjoys many company benefits. Gordon is a member of his employer's group life insurance plan and group disability plan$-$his employer pays the premiums in both cases. He is also permitted to use a corporate vehicle for his personal use and like all other employees of the company, Gordon can purchase various meat products at cost$.$

Gordon was able to borrow $$120,000$ from his employer on January $1$ st of last year, at a rate of $3\%$ compounded annually to purchase a rental property on Rice Street. The building was valued at $$80,000$; the land was valued at $$40,000.$ He agreed to repay the loan in full at the end of three years. Gordon was able to rent out the house as of February $1$st of last year for $$1,300$ per month. Rental expenses during the year amounted to $$5,780,$ not including loan interest of $$3,600.$

Excited by his initial success as a landlord, Gordon decided to purchase a second rental property on Leeman Avenue. For this purpose, his wife, Sandra, lent him $$130,000$ via a loan for value in August of last year. The land was valued at $$42,000$; the building was valued at $$88,000.$ Like Gordon's first rental property, the second rental property was in great condition and was immediately ready for renting. However, Gordon was only able to secure a tenant in December of last year, charging rent of $$1,200$ per month. By that time, Gordon had already spent $$1,400$ on property taxes, $$500$ in lawn maintenance services, $$400$ in advertising and loan interest of $$3,640$ with respect to this property.

Both of Gordon's rental buildings fall into CCA class $1,$ which has a maximum CCA rate of $4\%.$

What was Gordon's net rental income for tax purposes last year, ignoring any deductions for CCA?

a$)$ $$0$

b$)$ $$180$

c$)$ $$7,420$

d$)$ a loss of $$2,820$