Quantro Enterprises Ltd$.$ and Baizley Holdings Ltd$.($BHL$)$ are both $100\%$ owned by Harold Baizley.

Both companies are Canadian$-$controlled private corporations. Quantro operates a wholesale

business and pays rent to BHL for the use of a warehouse property.

BHL owns only one asset$$the warehouse building and related land that is rented by Quantro for

$$48,000$ 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 $$492,400($land $$53,200,$ building $$439,200).$ The property originally cost $$426,000($land

$$33,300,$ building $$392,700).$ The undepreciated capital cost of the building at December $31,2022,$

was $$338,000.$

One month before selling the warehouse property, BHL purchased a newly constructed warehouse

property for $$638,900.($land $$66,600,$ building $$572,300.).$

Required:

Determine BHL$$s net income for tax purposes for $2023.$

Property Income

Taxable Capital Gains

Net Income for Tax purpose