Michael Chan purchased 100% of the issued shares of Quality Rest Inc., a Canadian-controlled private corporation, which owns and operates an assisted-living retirement home in Ontario. Quality Rest has a December 31 fiscal year end. The transaction closed on October 1, 2022. At that time, the values of certain assets owned by Quality Rest were as follows: Land Building Furniture and fixtures Computer equipment. Inventory Marketable securities Incorporation/organization costs January 2021 - December 31, 2021 January 1, 2022 October 1, 2022 January 1, 2023 Cost $145,200 280,000 100,000 September 30, 2022 December 31, 2022 December 31, 2023 14,500 66,600 29,000 12,100 UCC N/A 108,900 78,700 7,300 N/A N/A 1,200 Michael selected December 31, 2022 as the first fiscal year-end for Quality Rest after the acquisition. The following is a schedule of Quality Rest's income and unused losses for the period January 1, 2021 through December 31, 2023. Business Income (loss) $(100,000) FMV $300,000 350,900 60,500 9,700 (242,000) (70,000) 40,000 62,900 12,100 500 Taxable Capital gain $ Nil Nil Nil 10,000 Net capital loss (22,000) Nil Nil Nil