On April 1st of the current year, Carl purchased 60% of the shares of P Ltd. from an unrelated person. Details of the inventory and other assets owned by P Ltd. at that time are summarized below.
Determine the tax implications for P Ltd. Income tax reference: ITA 10(1); 111(4)(a),(c),(d),(e); 249(4).

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Investment in A Ltd. Inventory Land Building (UCC $75,000) FMV S 10,000 50,000 100,000 120,000 Cost S24,000 30,000 80,000 90,000