Michael purchased 100% of the issued shares of Sentry Inc., a Canadian-controlled private corporation, which owns and operates an assisted-living retirement home in Ontario. Sentry has a December 31, fiscal year end. The transaction closed on October 1, 2019. At that time, the values of certain assets owned by Sentry were as follows: Land Building Furniture and fixtures Computer equipment Inventory Marketable securities Incorporation/organization costs Cost $145,200 280.000 100,000 14,500 66,600 29,000 12,100 UCC N/A 108,900 78,700 7.300 N/A N/A 1,200 FMV $300,000 350,900 60,500 9,700 62,900 12,100 500 Michael selected December 31, 2019 as the first fiscal year-end for Sentry after his purchase. The following is a schedule of Sentry's income and unused losses for the period January 1, 2018 through December 31, 2020. Taxable Capital gain Net capital loss Business Income (loss) ($100,000) (242,000) (70,000) 40.000 $ January 2018 - December 31, 2018 January 1, 2019 September 30, 2019 October 1, 2019 - December 31, 2019 January 1, 2020 - December 31, 2020 nil Nil ($22,000) Nil Nil Nil Nil 10,000 Required: Assuming Sentry does not make an election to recognize accrued gains or recapture under paragraph 111(4)(e) of the Income Tax Act: 1. Calculate the business loss for tax purposes for the period January 1, 2019 through September 30, 2019. 2. State the tax value (e.g., ACB, UCC) for each of the assets at October 1, 2019. Michael purchased 100% of the issued shares of Sentry Inc., a Canadian-controlled private corporation, which owns and operates an assisted-living retirement home in Ontario. Sentry has a December 31, fiscal year end. The transaction closed on October 1, 2019. At that time, the values of certain assets owned by Sentry were as follows: Land Building Furniture and fixtures Computer equipment Inventory Marketable securities Incorporation/organization costs Cost $145,200 280.000 100,000 14,500 66,600 29,000 12,100 UCC N/A 108,900 78,700 7.300 N/A N/A 1,200 FMV $300,000 350,900 60,500 9,700 62,900 12,100 500 Michael selected December 31, 2019 as the first fiscal year-end for Sentry after his purchase. The following is a schedule of Sentry's income and unused losses for the period January 1, 2018 through December 31, 2020. Taxable Capital gain Net capital loss Business Income (loss) ($100,000) (242,000) (70,000) 40.000 $ January 2018 - December 31, 2018 January 1, 2019 September 30, 2019 October 1, 2019 - December 31, 2019 January 1, 2020 - December 31, 2020 nil Nil ($22,000) Nil Nil Nil Nil 10,000 Required: Assuming Sentry does not make an election to recognize accrued gains or recapture under paragraph 111(4)(e) of the Income Tax Act: 1. Calculate the business loss for tax purposes for the period January 1, 2019 through September 30, 2019. 2. State the tax value (e.g., ACB, UCC) for each of the assets at October 1, 2019