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What are the tax consequences of the sale

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Problem - At the beginning of the year, Beta Co. had a Class 10 UCC balance of $3,120. During the year, Beta sold its delivery truck, its only Class 10 asset, for $4,000. The original cost of the truck was $18,000. What are the tax consequences of the sale?

Recapture of $880

Terminal loss of $880

Recapture of $880 and capital loss of $14,000

Terminal loss of $880 and capital loss of $14,000

Reference no: EM132984878

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