On January 1, 2023, Mr. Bratton owns the following two rental properties: Property A was acquired in 1987 at a cost of $120,000, of which $20,000 was paid for the land and $100,000 for the building. The UCC of the building is $68,000. Property B was purchased in 2015 at a cost of $220,000, of which $30,000 was paid for the land and $190,000 for the building. The UCC of the building on January 1, 2023, is $174,200. On August 28, 2023. Property B is sold for $655,000. At this time, the value of the land is $130,000 and the value of the building is $525,000. The property was used exclusively for residential purposes. On December 1, 2023, Mr. Bratton purchases Property C at a cost of $800,000, of which $250,000 is paid for the land and the remaining $550,000 is paid for the building. The property is used exclusively for residential purposes. Gross rents on all of the properties totalled $95,000 for 2023, and the cost of maintenance, municipal property tax, and mortgage interest totalled $105,400. The source of the rental income is not a business