Quantro Enterprises Ltd$.$ and Baizley Holdings Ltd$.($BHL$)$ are both $100\%$ owned by Harold Baizley. Both companies are Canadiancontrolled 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 $$36,000$ 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 $$370,000($land $$40,000,$ building $$330,000).$ The property originally cost $$320,000($land $$25,000,$ building $$295,000).$ The undepreciated capital cost of the building at December $31,2022,$ was $$254,000.$

One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $$480,000.($land $$50,000,$ building $$430,000.).$

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

Land: Taxable capital gains

$$15,000$