On December 20, 20X6, the existing motor, pulley and lifting system was sold for $2,500. The original cost of these components was $35,000. They had an expected life of 10 years and an estimated salvage value of $2,000. They had a net book value of $10,250. The cash received was recorded as a gain on sale of $2,500.

Installation of the replacement components was not finalized, and the components were not ready for use before year end. Thus, no amortization or capital cost allowance (CCA) are claimed for 20X6 on the replacement component.