Javan Co has the following related to Class 8 assets:

Beginning Balance: $40,000

Javan disposes of all assets within the class during the year, for proceeds of disposition of $20,000.

If Javan Co has no additions for the year, and there are no assets remaining in the class at the end of the year, which of the following will occur?

Choose the correct answer.

A. a terminal loss of $20,000

B. recapture of $20,000 of CCA

C.recapture of $16,000 of CCA

D.a terminal loss of $16,000