Photo Tonight, a film$-$developing and camera$-$repair franchise, began business on January $1,2023.$ In the process of

beginning operations, it incurred the following capital expenditures.

The business was immediately successful and generated substantial profits for the years ended December $31,2023$

and $2024.$

In $2024,$ the truck was traded in for a larger unit costing $$20,300.$ A value of $$7,000$ was assigned to the old truck

when it was traded in$.$

In $2025,$ the owner was forced to leave the business due to illness. As a result, the assets were valued and sold on

December $31,2025,$ for the following values.

Required:

Complete the table below to calculate the effect of all these transactions on net income for tax purposes for the $2023,$

$2024,$ and $2025$ taxation years. Assume none of the assets are designated immediate expensing property. $($Use a

minus sign $(-)$ when entering numbers that reduce UCC.$)$

Rate

$2023$

Purchase

CCA

UCC

$2024$

Purchase

Disposal

CCA

UCC

$2025$

Disposal

Recapture

$($Terminal Loss$)$

Ending UCC

balance

Capital Gains

Taxable Capital

gains

Increase

$($Decrease$)$

on Net

income