Use the Following Information to Answer Questions:
Tarantula Corp $\$ 200,000$

question 66

Multiple Choice

Use the following information to answer questions:
Tarantula Corp. reported the following information about the only machine that it owns:
Date of purchase..............................March 31, 2020
Capital cost................................ $\$ 200,000$
Estimated useful life......................10 years
Estimated residual value................ $\$ 20,000$
CCA Class..................................Class $10(30 \%)$ Tarantula uses straight-line depreciation to the nearest month for accounting purposes.
-Assume that at the end of calendar 2019, the UCC for this machine is $83,300. Tarantula sells the machine on January 2, 2020 for $90,000, and does not replace it. The recapture of CCA or terminal loss would be

• A) $60,500 terminal loss.
• B) $56,000 recapture.
• C) $6,700 terminal loss.
• D) $6,700 recapture.

---

Definitions:

Commercial Energy

Energy derived from commercial sources such as fossil fuels, intended primarily for businesses and manufacturing.

Wasted

Refers to resources or materials that are not used efficiently or are discarded without being utilized to their full potential.

Space Heating

The process of providing warmth to interior spaces of buildings, primarily for the comfort of occupants, through various heating systems and methods.

Passive Solar

A method of capturing sunlight directly through strategic design and building placement to naturally heat and light homes, reducing energy use.