A CCA recapture or terminal loss can arise when
I.the CCA asset class is terminated
II.assets are sold for less than UCC of asset class
III.assets are sold for more than UCC of asset class
A)I only
B)I, II, and III
C)II or III only
D)I or III only

Question

Quizplus · Accepted Answer

CCA recapture or terminal loss can arise in all three scenarios: when the CCA asset class is terminated, when assets are sold for less than the UCC of the asset class (leading to a terminal loss), and when assets are sold for more than the UCC of the asset class (leading to a CCA recapture).

A CCA Recapture or Terminal Loss Can Arise When