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Roy disposed of a piece of equipment that falls into his Class 8 CCA account...

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Finance

Roy disposed of a piece of equipment that falls into his Class 8 CCA account (it was the only asset in this account). The proceeds of disposition on the equipment are $5,000. The UCC is $8,000 and the original cost was $20,000. With regard to this transaction, which one of the following statements is true?

A.

The entire proceeds of disposition are taxable.

B.

Roy realizes a $2,000 recapture of CCA.

C.

Roy realizes a $3,000 terminal loss.

D.

Roy realizes a $10,000 capital loss.

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