The Lento Corporation recently purchased a long$-$term asset for $$40,000,000.$ The company's CFO expects that the asset will have a $6$ year

life. The asset has an $22\%$ CCA rate. At the end of year five it is expected that the company will be able to sell the asset for $$12,000,000.$

A$.$ Using the half$-$year rule, determine the value of the terminal loss or recapture at the end of year six.

B$.$ Assuming a $20\%$ tax rate calculate the tax savings due to CCA in year six.