XT Inc. is a Canadian -controlled private corporation operating a retail business. Its fiscal year end is December 31. On October 1, 2019, the controlling shareholder sold all of her XT shares to YY Inc. YY is not related to XT. As of September 30, 2019, XT had net income from business of $400,000. A review of XT's balancesheet revealed the following:

Cost

Undepreciated Capital Cost

Market value

Inventory

600,000

550,000

Investment in shares of a CCPC

100,000

20,000

Land

100,000

400,000

Building

600,000

420,000

700,000

At the end of the previous year, XT had a net capital loss for tax purposes of $30,000 incurred in 2017.

Required

Indicate the tax implications for XT from the change in ownership