Anax Corporation Purchased a Long-Term Asset for $100,000

Anax Corporation purchased a long-term asset for $100,000. The asset has a 30% CCA rate. At the end of year 5, Anax sold the asset for 25% of its original value. Given this information, determine the value of the terminal loss or recapture at the end of year 5.

A) Recapture; $4,591
B) Recapture $4,391
C) Recapture $1,501
D) Terminal Loss $1,501
E) Terminal Loss $4,391