Sherd Inc. disposes of a Class 8 asset for proceeds of $246,000. The capital cost of this asset was $183,000 and it had a net book value of $92,500. The Company's Class 8 contains a number of other assets and the balance for the Class prior to this disposition was $1,648,000. Describe briefly the accounting and tax treatments of this disposition.

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The Answer of Sherd Inc. disposes of a Class 8 asset for proceeds of $246,000. The capital cost of this asset was $183,000 and it had a net book value of $92,500. The Company's Class 8 contains a number of other assets and the balance for the Class prior to this disposition was $1,648,000. Describe briefly the accounting and tax treatments of this disposition.

Sherd Inc Disposes of a Class 8 Asset for Proceeds of of $246,000