Problem
Closet International invested in an equipment in 2019 with an initial cost of $598,000. It falls under asset class 8 with a CCA rate of 20%. The equipment was sold in 2021 for $260,000.
a) Calculate the beginning UCC, CCA, and ending UCCfor 2019, 2020, and 2021.
b) Was there a capital gain when the machinery wassold? Explain your answer.
c) Was there a CCA recapture or terminal Loss?Explain your answer