as canadian corp tax act. You are the tax consultant for ABC Ltd$.,$ a wholesale company which has a December $31$ year$-$end. The owner$-$manager of the corporation wants to minimize ABC$$s income for tax purposes. You are given the following information.

In June $2024,$ ABC Ltd$.$ replaced a building in Class $1($the only asset in the class$)$ destroyed by fire in $2023$ with another building $($new and unused non$-$residential building$)$ that cost $$550,000.$ Insurance proceeds of $$375,000$ were received in May$2023.$ The original cost in $2013$ of the destroyed building was $$300,000.$ This was the only capital asset transaction in $2023$ and $2024.$ The undepreciated capital cost of Class $1$ at the beginning of $2023$ was $$220,000.$

Required:

Explain why the transaction qualifies for the replacement property rules. You should quote the appropriate provisions in the Income Tax Act to support your explanation.

Compute the minimum income that must be reported for the corporation$$s $2023$ taxation year after the above disposition and purchase transactions have taken place. You are computing the amounts that would be included on the amended return for $2023.$ You do not need to provide references.

Indicate the ACB and the UCC of the new building. Indicate the class and rate for the building. You do not need to calculate the CCA amount. You do not need to provide references.