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MotoSport is buying an asset that costs $ 7 3 0 , 0 0 0 and can be depreciated at 2 0 percent per year

MotoSport is buying an asset that costs $730,000 and can be depreciated at 20 percent per year (Class 8) over its eight-year life. The asset is to be used in a three-year project; at the end of the project, the asset can be sold for $740,200. The company faces a tax rate of 26%. The sale of this asset will close the asset class. The _______ from the sale of asset is _________.
Multiple Choice
Capital gain; $10,200
Capital gain; $319,720
Terminal loss; $10,200
Terminal loss; $319,720
Capital gain; $11,583

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