Co. Z had a UCC balance of Class 10, of $4,000. The cost of the assets was $7,000. During the year, all the assets were sold for $8,000. What is the taxable income from this transaction?

A. $4,000

B. $1,000

C. $3,500

D. $8,000

Co. Z had a UCC balance of Class 10, of $8,000. The cost of the assets was $10,000. During the year, all the assets were sold for $14,000. What is the taxable income from this transaction? A. $3,500

B. $8,000

C. $1,000

D. $4,000

What is the tax impact if assets with a UCC balance of $20,000 are sold for $22,000 and the original cost was $30,000 and no other assets are acquired during the year?

A. Terminal Loss of $8,000

B. Capital Gain of $2,000

C. Recapture of $2,000

D. Taxable Income of $1,000