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

question 52

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

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Definitions:

18th-Century

Refers to the period from 1701 to 1800, marking significant developments in areas such as the Enlightenment, industrial revolution, and colonial expansion.

Adultery

A voluntary sexual relationship between a married person and someone who is not their spouse.

Exogamy

Marriage outside the group.

Social Alliance

A collaboration or partnership formed between various groups, organizations, or nations to achieve common social goals or address societal issues.