A Company Purchased Computer Equipment That Is Class 10 for Income

A company purchased computer equipment that is Class 10 for Income Tax purposes (Class 10 is declining balance, but with a 30% rate) . The company made the following two journal entries: How is the $300 loss treated in discounted cash flow analysis?

A) It reduces the net additions to class 10 for calculating CCA.
B) The loss times the tax rate is an after-tax cash flow.
C) The loss plus the accumulated amortization are disposals for class 10.
D) It reduces the net additions to class 10 for calculating CCA, and (the loss) times (the tax rate) is an after-tax cash flow.
E) It is ignored.