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Quantro Enterprises Ltd . and Baizley Holdings Ltd . ( BHL ) are both 1 0 0 % owned by Harold Baizley. Both companies are
Quantro Enterprises Ltd and Baizley Holdings LtdBHL are both 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.
points BHL owns only one assetthe warehouse building and related land that is rented by Quantro for $ 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 the yearend of both companies BHL sold the warehouse property to a third party for $land $ building $ The property originally cost $land $ building $ The undepreciated capital cost of the building at December was $
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One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $land $ building $
Required:
Determine BHLs net income for tax purposes for
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