Noluck Enterprises has a December 31 year end. On March 20, 20X6 the company’s warehouse was destroyed by fire. The original cost of the warehouse was $120,000. At the time of the fire, the warehouse was valued at $300,000 and was insured. Class 1 had a UCC balance of $95,000 at December 31, 20X5. Noluck was forced to lease a warehouse until a new one could be acquired. On November 30, 20X8, Noluck purchased a new warehouse costing $325,000. Assume the new warehouse was constructed after May 18, 2007.
Calculate the minimum recapture of CCA on the disposal of the warehouse. Income tax reference: ITA 13(1), (4).