In 2015, Justin bought a machinery, at a cost of $10,000, for his business. It is the only property in its class at the beginning of 2019. The class has a UCC of $6,000. He sold the machinery in 2019 and did not buy any other property in that class. Calculate the following: (a) Terminal loss by assuming that he has sold machinery for $ 4000 (b) Capital gain and Recapture by assuming that he has sold machinery for $ 12000. (C) Capital gain (if any) and Recapture by assuming that he has sold machinery for $ 8000. (NOTE: For (a), (b) & (c) also discuss the treatment of respective results i.e terminal loss, capital gain and recapture

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a If the machinery old for 4000 Since the machinery sold for a value less than its cost there is no ... View the full answer