AP 5 -8 (CCA, Recapture, and Terminal Losses - Includes Taxable Capital Gains) Microfast Ltd. has a calendar-based taxation year ending December 31. As of January 1, 2023 Microfast had the following UCC balances for its various depreciable property: Other information related to the company's depreciable property is as follows: Class 1 The January 1, 2023, UCC balance in class 1 contains one property that is a single building that was acquired in 2017 for $900,000. Of this total, $200,000 was allocated to the land on which the building was situated and the remaining $700,000 to the building. On February 1, 2023, the building, which was in need of considerable repairs, and the land were sold for $800,000$200,000 for the land and $600,000 for the building. A new building was purchased on November 15,2023, at a cost of $1,450,000 with $350,000 of this total being allocated to the land on which the building was situated and the remaining $1,100,000 for the building. Fifty percent of the floor space of the new building is used for manufacturing and processing with the remaining 50% used for office space in support of the manufacturing and processing. An election was filed to include the building in a separate class 1. Class 8 On March 1,2023 , the company purchased class 8 property for $111,256. As a result of trading in older class 8 property, the company received a trade-in allowance of $20,000, resulting in a net cost for the new property of $91,256. The capital cost of the property traded in was $58,425. Class 10 The January 1, 2023, UCC balance in class 10 reflects 10 zero-emission vehicles that are vans with limited seating capacity that are used to transport goods by the company's sales staff. The vehicles were eligible for the $5,000 incentive offered by the federal government, which reduced their pre-sales tax cost from $44,000 to $39,000 each. Their capital cost totalled $390,000. The company decided it would be more economical to provide their sales staff with leased vehicles. To this end, the 10 vehicles were sold for