Quick Growth Stores Ltd. has decided to change the present location of its retail store, now in a suburban area, to the Yonge Street strip in downtown Toronto. The following facts relate to the disposition of the original property in March 2015.

Quick Growth Stores Ltd. purchased its Yonge Street property in August 2016 for the following amounts:

Note that the only change in this scenario from the previous example is that the acquisition cost of the new land is less than the proceeds of disposition of the land sold.

REQUIRED
Indicate the tax consequences for the land only, if Quick Growth Stores Ltd. elects, under section 44 (assuming that its fiscal year-end is December 31.)

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Cost UCC P of D Land $30,000 70,000 CI 1 Building $50,000 30,000 100,000 CI 8 Equipment $5,000 1,500 500