You are the tax partner in your own small accounting firm and you have just finished a meeting with a new client, Curtis Grey who is the sole shareholder for Grey Holdings Ltd$.$ Grey Holdings Ltd$.$ has a December $31$ fiscal year end. During the meeting, Curtis provided you with the applicable information for Grey Holdings Ltd$.$ so that you may prepare the corporate tax return for the current year.

Curtis informs you that Grey Holdings Ltd$.$ has a large portfolio of investments and gives you the following information for income and transactions, including dispositions and other information, for the current year:

$$ Dividends from public Canadian corporations $($subject to high corporate tax rates gross up included$)$ $$11,500$

$$ Dividends from private Canadian corporations $($subject to low corporate tax rates gross up included$)$ $$42,550$

$$ Interest income received from foreign sources $$13,068$

$$ Note: Total foreign interest earned was $$14,520$ less foreign tax withheld of $$1,452$

$$ Dividends from foreign corporations $($translated into Canadian dollars$)$ $$8,550$

$$ Note: Total foreign dividends earned was $$9,500$ less foreign tax withheld of $$950$

$$ The corporation$$s portfolio of investments includes a five year investment contract, purchased on June $1$ of the current year. The investment contract has a maturity value of $$250,000$ and an annual interest rate of $4\%.$ The total interest earned on the investment contract will be paid on maturity on June $1,$ two years from now. The corporation did not receive any interest $($cash$)$ from this investment contract in the current year.

$200$ Apex Inc. $($a public Canadian corporation$)$ shares bought for $$12$ per share; sold on March $10$ for $$25$ per share; brokerage commission $=$ $$250$

$350$ TD Canada Trust shares purchased for $$100$ per share; Grey Holdings Ltd$.$ continues to own these shares at December $31$ of the current year. Curtis happily informs you that the shares have gone up in value, with a market value of $$160$ per share on December $31.$

$150$ Westjet shares sold on July $2$ for $$65$ per share, and paying brokerage commission of $$320$ for this transaction. Curtis advises you that the corporation purchased $200$ Westjet shares three years ago for $$40$ per share and another $300$ shares two years ago for $$44$ per share, thus after the dispositions in the current year, the corporation continues to hold $350$ Westjet shares.

Curtis informs you that the corporation$$s portfolio of investments are managed by a large Canadian brokerage firm called TradeEx Investments Inc. $($TradeEx$).$ TradeEx charges the corporation investment counsel fees of $$7,250$ during the current year.

In the previous year, Grey Holdings Ltd$.$ sold a large number of investments from the portfolio with TradeEx. The after$-$tax proceeds from this sale were invested into a rental property. The property was purchased in the prior year for $$525,000($$$150,000$ of this value relates to the land, the remainder to the building$)$ and has been rented continuously for the entire previous and current taxation years. Curtis informs you that the corporation claimed the maximum amount of capital cost allowance $($CCA$)$ on the property in the previous year and would like to claim the maximum CCA deduction on the rental income this year. The rental income and expense information for the current year is as follows:

$$ Rental income: $$2,500$ per month

$$ Property tax: $$4,750$ for the year

$$ Property insurance: $$130$ per month

$$ Property management fees: $$160$ per month

$$ Utilities: $$650$ per month

$$ Repair of a leaky faucet and water damage: $$1,500$

Grey Holdings Ltd$.$ had excess cash reserves ten years ago, which it used to purchase a small parcel of vacant land for $$40,000.$ Although the corporation does not have a mortgage on the land, Grey Holdings Ltd$.$ has paid annual property tax of $$1,150$ each year for the past ten years. Curtis tells you that the corporation had plans for the land that did not work out and thus the land has been vacant for all ten years. As such, in August of the current year, the corporation sold the land for proceeds of $$60,000,$ from which real estate commission of $$3,500$ and legal fees of $$1,500$ were paid.

Required: Answer the following questions.

$1.$ Compute the net property income for Grey Holdings Ltd$.$ for the current year.

$2.$ Calculate the net taxable capital gain $($loss$)$ for Grey Holdings Ltd$.$ for the current year.