Need-Based Accounting Corp. has just purchased 10 photocopiers for a total cost of $500,000. The CCA rate for these photocopiers is 20%. The company plans to use these photocopiers for 10 years. By the end of the 10^th year, the company expects to move into new imaging system that will no longer require the photocopiers, and the asset pool will then be closed. If the company can sell the photocopiers for $50,000 in 10 years time, what amount of terminal loss/CCA recapture can be claimed after the photocopiers have been sold? Assume that half-year rule applies.

Multiple Choice

• Terminal loss = $4,159.19

• CCA recapture = $4,159.19

• Terminal loss = $15,099.50

• CCA recapture = $10,397.98

• Terminal loss = $10,397.98