Pidgeon Dock Ltd. (PD) sold a property in its year ended January 31, 2012. The details are as follows:

The building was the last remaining asset in Class 3. PD prepared its corporate tax return based on the proceeds of disposition shown above. The CRA is now auditing PD.
REQUIRED
Identify and calculate any adjustment the CRA will make to PD's 2012 income tax return.

Proceeds Cost UCC Building Land $300,000 $400,000 350,000 175,000 $100,000 N/A