An Asset with a Purchase Cost of $256 422 and a CCA

question 83

Multiple Choice

An asset with a purchase cost of $256 422 and a CCA rate of 30% has a market value of $31 000 at the end of its 8-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 $5 357
• B) There is a terminal loss of $4 729
• C) There is a recapture of $3 372
• D) There is a terminal loss of $7 253

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Definitions:

Atomic Symbols

Abbreviations assigned to elements based on their names, used for representing elements in chemical formulas and equations.

Chromium

A lustrous, hard, and brittle metallic element used in alloys to increase strength and corrosion resistance.

Krypton

A chemical element with the symbol Kr and atomic number 36, a noble gas used in lighting and photography.

Cobalt

A chemical element with the symbol Co and atomic number 27, known for its metallic properties and use in alloys and batteries.