In 2016 Reliable Medical Labs, replaced old processing equipment with new processing equipment. The firm sold the older processing equipment, for $60,000. When it was purchased in 2014, the older equipment had cost $95,000. The cost of the new equipment is $150,000 and it is now the only asset in the class.

In 2018, the company decided to re-direct all corporate efforts to their more successful medical supply distribution business and will drop their lab processing division. They sold the only asset in that class for $75,000.

(Assume year-end is December 31^st, the applicable tax rate is 40% and the CCA rate is 30%)

Required:

(a) Calculate the CCA for the asset pool claimed in each year from 2014 through 2018.

(b) For 2018, calculate the :

(i) recapture depreciation, terminal loss, capital gains if any, that result from the sale of the machinery, and

(ii) the After Tax Cash Flow that results from the sale in 2018