Suppose your firm is considering buying a van costing $95,000. What is the Undepreciated capital cost (UCC) for the van after Five years. Note: the van falls in class 10 with a 30 percent CCA rate. Use the tabular approach when calculating the UCC after Five years.

a) Calculate the UCC at the end of year 5

b) If the Van is sold at $4500 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?

c) If the Van is sold at $55,000 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?