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Bob's Trucking Ltd. (Bob's), a public company has a September 30 taxation year. At September 30, 2020, the balance in Class 10 was $65,000, representing
Bob's Trucking Ltd. (Bob's), a public company has a September 30 taxation year. At September 30, 2020, the balance in Class 10 was $65,000, representing the undepreciated capital cost of 4 trucks purchased in 2015 for $27,000 each. In November 2020, Bob's purchased one more truck for $32,000. In August 2021, Bob's decided to start leasing trucks rather than owning them. Consequently, Bob's sold all its trucks for $18,000 each before its 2021 year-end. Which of the following statements is true with respect to Bob's Class 10 capital cost allowance for its 2021 taxation year? Bob's can claim CCA of $33,900 Bob's can claim CCA of $7,000. Bob's has a $7,000 terminal loss. Bob's has a recapture of $43,000
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