he Adagio Corporation recently purchased a long$-$term asset for $$4,000,000.$ The company's CFO expects that the asset will have a $5$ year life. The asset has an $25\%$ CCA rate. At the end of year five it is expected that the company will be able to sell the asset for $$500,000.$

A$.$ Using accelerated depreciation, determine the value of the terminal loss or recapture at the end of year five.

B$.$ Assuming a $20\%$ tax rate calculate the tax savings due to CCA in year four.