Nicastro Ltd., a CCPC, with a December 31 taxation year end has been in business for many years and, until recently, it has been fairly profitable. All of its shares are owned by Luigi Nicastro.

The Company has always manufactured and sold fresh pasta, largely to restaurants and stores in the local Italian community. All went well until the beginning of 2021 when a local Italian newspaper discovered that Mr. Nicastro's real name was Stanley Kowalski and that he had never been to Italy. Demand for his Company's products immediately fell off, resulting in a business loss in 2021 of $189,000 resulting in a 2021 non-capital loss of the same amount.

In addition, in 2021, the company was forced to sell some business properties to meet its cash flow needs. This resulted in an allowable capital loss of $48,000 which resulted in a 2021 net capital loss of the same amount.

While $114,000 of the 2021 non-capital loss could be carried back to previous taxation years, all of the 2021 net capital loss had to be carried forward since there were no net taxable capital gains in the three previous taxation years.

In early 2022, he began looking for a buyer for his Nicastro Ltd. shares. After considerable searching, he found a buyer and, as of June 1, 2022, all of the Nicastro Ltd. shares were sold to Stella d'Oro Inc, an unrelated person.

For the period January 1, 2022 through May 31, 2022, Nicastro Ltd.'s accountant determined that there was a business loss of $79,000. During this deemed short taxation year, the Company had rental income of $5,500. There was also a disposition of preferred share investments owned by the company that resulted in an allowable capital loss of $7,200.

On May 31, 2022, Nicastro owned the following capital properties:

Capital Properties Cost & ACB UCC FMV

Investments In TD Common Shares $ 32,000 N/A $ 28,000

Land 85,000 N/A 235,000

Building 427,000 $285,000 327,000

Equipment 120,000 60,000 50,000

Required:

A. Calculate Nicastro's net income and taxable income for the short taxation year ending May 31, 2022. Indicate the amount of any non-capital and net capital loss balances that would be available to apply to other taxation years, using the assumption that Nicastro makes all of the available elections using the maximum elected amounts.

B. Provide the information required in Part A assuming that Nicastro makes only those election(s) required to offset any non-capital and net capital losses.