A proprietor purchases an income-producing asset that has a class life of five years. It is...
A proprietor purchases an income-producing asset that has a class life of five years. It is the only asset the company owns. The proprietor sells the asset after four years. If the asset's market value has declined by more than the CCA taken, ________ for the year.
Choose the correct answer.
A.
there will be a capital gain
B.
the UCC balance will be negative
C.
there will be a capital loss
D.
there will be a terminal loss
Homework Answers
Solution:
If the asset's market value has declined by more than the CCA taken, there will be a terminal loss for the year.
Hence option D is correct.
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A proprietor purchases an income-producing asset that has a
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