In 2019 a Storage Facility Was Destroyed in a Fire

question 10

Multiple Choice

In 2019 a storage facility was destroyed in a fire.The UCC of the building was $47,000 and the original cost was $50,000.Insurance proceeds of $55,000 were received for the market value in 2019.Pursuant to S.13(4) , the taxpayer elected to defer the recapture.A new building was built in 2020 at a cost of $60,000.How much is the amended recapture in 2020?

• A)$0
• B)$3,000
• C)$8,000
• D)$13,000

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Definitions:

Binary Fission

Equal division of a prokaryotic cell into two; a type of asexual reproduction.

Cyclin-Cdk

Complexes formed by cyclin and cyclin-dependent kinases that regulate progression through specific phases of the cell cycle.

Cytokinesis

Stage of cell division in which the cytoplasm divides to form two daughter cells.

Prophase

The first stage of mitosis. During prophase the chromosomes become visible as distinct structures, the nuclear envelope breaks down, and a spindle forms.