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$