At the end of last year, the UCC balance for class 12 was $1,300. During the current

Question:

At the end of last year, the UCC balance for class 12 was $1,300. During the current year, a class 12 item with an original cost of $8,000 was disposed for $2,000.There were no other class 12 transactions in the current year.
Calculate the effect of the disposal on business income for the current year. Income tax reference: ITA 13(21).