If a business asset with a capital cost of $100,000 and a UCC of $80,000 is converted to personal use at a time when its fair market value is $150,000, which of the following statements is NOT correct?

Question

Quizplus · Accepted Answer

The capital cost for CCA purposes remains at the original cost of the asset, which is $100,000, not $125,000. When an asset is converted from business to personal use, for capital gains purposes, the cost basis is considered to be the fair market value at the time of conversion, which is $150,000, but this does not affect the capital cost for CCA purposes.

If a Business Asset with a Capital Cost of $100,000