Quick Growth Stores Ltd. has decided to change the present location of its retail store, now in a suburban area, to the Yonge Street strip in downtown Toronto. The following facts relate to the disposition of the original property in March 2015.

Quick Growth Stores Ltd. purchased its Yonge Street property in August 2016 for the following amounts:

The company wishes to elect to defer both the capital gain and the recapture.

REQUIRED
Indicate the tax consequences if Quick Growth Stores Ltd. elects, assuming that its fiscal year-end is December 31.

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Cost UCC P of D Land $30,000 70,000 CI 1 Building $50,000 30,000 100,000 CI 8 Equipment $5,000 1,500 500