Several years ago, Solea Company purchased a Mercedes Benz that is used exclusively for business use. The car is in a separate Class 10.1. On January 1, 2012 the UCC balance is $17,850. On August 1, 2012 the car was sold for $17,000. For 2012 tax purposes, the company will report a:

Select one:

a.

Terminal loss of $850

b.

Recapture of $850

c.

CCA deduction of $2,678

d.

CCA deduction of $2,245