Kitchener Pant Sales Ltd$.($KPSL$),$ a retailer of men$$s ready$-$to$-$wear pants, commenced operations in $2022$ with a December $31$ year$-$end. The corporation incurred losses in its first two years of operations as follows:

$$ non$-$capital losses$$ net capital losses

December $31,2022$ $$200,000$ Nil$$

December $31,2023250,000$ $$10,000$

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On October $1,2024,65\%$ of the common shares of KPSL were purchased by Frugal$$s Ltd$.($FL$).$ FL intends to inject additional capital and retrain the management of KPSL$.$ FL is confident that with its expertise and track record it will be able to turn KPSL$$s business around and make it profitable within two years.

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A financial statement was prepared for KPSL for the nine months ended September $30,2024.$ From this statement, it was determined that KPSL had incurred business income for tax purposes of $$18,000$ for the period.

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The financial statement and tax records also revealed the following values of the assets owned by KPSL on September $30,2024$:

$$Cost$$ UCC$$ FMV$$

$$ Marketable securities$$ $$19,000$ N$/$A$$ $$5,000$

$$ Inventory$50,000$ N$/$A$45,000$

$$ Land$550,000$ N$/$A$750,000$

$$ Building$95,000$ $$75,000115,000$

$$ Store fixtures and equipment$75,00045,00024,000$

$$ Computers$15,0008,00013,000$

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Required:

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$($a$)$ Describe all the relevant tax impacts to KPSL of the above acquisition.

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$($b$)$ Compute the current year business income or loss the appropriate loss balances assuming the corporation takes full advantage of all elections to utilize expiring losses.