Tax

Question 17 (2 points) Kinnetics Inc. purchased Equipment Z for $25,000 on January 2, 2015. Kinnetics is subject to a 25% tax rate and all of Kinnetics, depreciable assets are Class 10 with a CCA of 30%. Kinnetics Inc. beginning UCC is $90,000 in 2016. In 2016, Kinnetics Inc. replaced Equipment Z with Equipment Z+. It was able to sell Equipment Z for $21,500 and Equipment Z+ cost $27,000. What is the hypothetical recapture CCA or additional UCC allowance on Equipment Z that was sold (calculate this value even though it may not be necessary to actually make a tax adjustment in this year)? (for recapture tax put a negative sign before the dollar sign and for additional allowance write out the number as is. For example, if you get recapture CCA of $25,000 then enter it as -$25,000 and if you get additional UCC allowance of $40,000 then enter it as $40,000)