A company is changing its business operations and therefore sells most of its assets in Class 8 . However, it continues to hold some Class 8 assets. The disposition results in a credit UCC balance in Class 8 . Which of the following statements is correct? The credit balance is an allowed deduction in the year. The credit balance represents recapture of CCA and is included in the company's capital gains calculated for the current year. The credit balance is a terminal loss. The credit balance represents recapture of CCA and is included in the company's business income in the current year. The credit balance is carried forward to the following year. QUESTION 2 How should the sale of a depreciable capital asset be recorded in the CCA system in Canada? cost Sale proceeds Lesser of the cost or proceeds of disposition Fair market value (EMV) A sole proprietor business is changing its operations and sells all of its assets in Class 12. After the disposition is recorded. there is a debit UCC balance in Class 12. Which of the following statements is correct? The debit balance is carried forward as a business deduction in the following year. The debit balance.is the opening UCC for Class 12 in the following year. The debit balance is a terminal loss and is reported as a business deduction in the year. The debit balance is a recapture and is reported as business income in the year. QUESTION 4 A company sells a piece of equipment, You are provided with the following information: 1. The onginal cost of the equipment was $12,000. 2. The equipment is sold for $8,000. 3. The value of the equipment at the time of disposition is 59.500 . 4. The opening UCC balance in Class 8 is $23,000. 5. New equipment is purchased for $15,000. What amount is recorded as a disposition in Class 8 ? 59,500 58,000 $12,000