Sherry owned a rental property. She originally acquired the property for $260,000 with $200,000 of the cost attributed to the building. Over the years, Sherry has claimed CCA of $32,000, such that her UCC at the beginning of the year was $168,000. The rental property is the only asset in the class. This year, she sold the property for $214,000, with $160,000 of the sale price attributed to the building. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Sherry's terminal loss is calculated based on the difference between the UCC at the beginning of the year ($168,000) and the portion of the sale price attributed to the building ($160,000), resulting in a terminal loss of $8,000.

Sherry Owned a Rental Property