On January 1, 2020 Bernard Borrowed $5,000 by Signing a 1-Year

Multiple Choice

On January 1, 2020 Bernard borrowed $5,000 by signing a 1-year note payable at 6% interest and used the money to purchase 2,000 common shares of Import Ltd., a Canadian public corporation for $2.50 per share. During 2020 Import Ltd. paid eligible dividends of $0.35 per share. On January 1, 2021 Bernard repaid the $5,000 he borrowed plus $300 in interest. On his 2020 tax return, Bernard will report:

A) Net Property Income of $400.
B) Net Property Income of $666.
C) Net Property Income of $700.
D) Net Property Income of $966.