An Asset with a Purchase Cost of $112 500 and a CCA

Multiple Choice

An asset with a purchase cost of $112 500 and a CCA rate of 20% has a market value of $7 500 at the end of its 12-year life. Assume this asset is the only asset in its class. Which of the following statements about this situation is correct?

A) There is a recapture of $5 111
B) There is a terminal loss of $6 054
C) There is a recapture of $2 218
D) There is a terminal loss of $3 372