On March 1, 2012, Raymond Fan, a sole proprietor, sold his garden supply store in downtown Toronto to a competitor because of declining sales caused by competition from large suburban hardware and grocery stores. The following information relates to the sale of the business:

Raymond's business year-end coincided with the calendar year. Raymond has been in the same business since 1994. As of December 31, 2011, there was a balance in the allowance for doubtful accounts for tax purposes of $1,300.
Subsequent to the sale of the business, Raymond worked for his brother, Kevin, who owned a shoe store. However, Raymond became bored and when a garden supply store on a busy highway north of Toronto came on the market in late November 2013, he immediately bought it. The following information relates to his purchase of assets of the new business:
Land$105,000
Building220,000
Equipment - Class 8 9,000
- Class 10 .................................................................. 11,000
Goodwill Nil
REQUIRED
(A) Compute the minimum amount Raymond must include on his 2012 tax return in respect of the sale of the business, before any election is made to defer capital gains and recapture.
(B) Show the effect on Raymond's 2012 (amended) and 2013 tax returns if he elects to defer capital gains and recapture after purchasing the new business, but does not elect for additional deferral.
(C) Discuss whether Raymond should have elected for additional deferral.
(D) If the above situation had been an involuntary disposition instead of a voluntary disposition, how would your answer under part (B) differ?

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UCC/CEC Proceeds Cos Jan, 2012 Accounts receivable Land. . .. . 6,000 $10,000 120,000 170,000 62,000 28,000 300 800 3,000 1,200 4,000 12,000 5,200 7,000 Inventory.... 52,000-