BHL owns only one asset$-$the warehouse building and related land that is rented by Quantro for $$39,600$ per year. The property was originally owned by Quantro but was sold to BHL several years ago as a means to reduce the risk exposure of this appreciating asset.

On December $31,2023($the year$-$end of both companies$),$ BHL sold the warehouse property to a third party for $$407,000($land $$44,000,$ building $$363,000).$ The property originally cost $$352,000($land $$27,500,$ building $$324,500).$ The undepreciated capital cost of the building at December $31,2022,$ was $$279,400.$

One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $$528,000.($land $$55,000,$ building $$473,000.).$

Required:

Determine BHL$\text{'}$s net income for tax purposes for $2023.$

Answer is not complete.

Rent

CCA on new warehouse

Recapture of CCA

Property Income

Building: Taxable capital gains

Land: Taxable capital gains

Taxable Capital Gains

Net Income for Tax purposes