The rental property is the only asset this year she sold


Sherry owned a rental property. She originally acquired the property for $260,000 with $200,000 of the cost attributed to the building. Over the years, sherry has claimed CCA of $32,000, such that her UCC at the beginning of the years was $168,000. The rental property is the only asset. This year, she sold the property for $214,000, with $160,000 of the sale price attributed to the building. Which of the following statements is correct?

a. Sherry has a terminal loss of $8000

b. Sherry has a capital loss of of $36,000

c. Sherry has allowable capital loss of $4000

d. Sherry has recapture of $32,000

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Accounting Basics: The rental property is the only asset this year she sold
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