Quantro Enterprises Ltd. and Balzley Holdings Ltd. (BHL) are both 100% owned by Harold Balzley. 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 bullding and related land that is rented by Quantro for $43,600 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, 2019 (the year end of both companies), BHL sold the warehouse property to a third party for $447,700 (land $48,400, bulding $399,300). The property originally cost $387,300 (and $30,300, bullding $357,000).The undepreciated capital cost of the building at December 31, 2018, was $307,300. One month before selling the warehouse property. BHL purchased a newly constructed warehouse property for $580,800. (land $60,500, building $520,300)

Required: Determine BHL's net income for tax purposes for 2019.

Rent:

Recapture of CCA:

CCA on new warehouse:

Net property income:

Building capital gains:

Land capital gains:

Net taxable capital gains:

Net income for Tax purpose: