In 2018 an asset was purchased for $8,000,000. It was not eligible for initial allowance. annual allowance rate was 10%. The asset was sold in 2022 for $8,500,000. Capital allowance is on the straight-line basis.

The balancing adjustment is:

a.

$3,700,000

b.

$3,200,000

c.

$4,500,000

d.

$4,000,000