Wally’s is a department store operating in the area. In May 2014, a fire virtually destroyed the building. The only asset that was recovered was an F.A.D. computer, and it was substantially damaged. The computer had been purchased by Wally’s in December 2013 at a cost of $75,000 and as a Class 50 asset it had been depreciated at a rate of 55% since 2013.
In August 2014, under an insurance policy with the Risk-Averters Insurance Company, Wally’s received $25,000 for the damage to the computer. Wally’s had the computer repaired to its original condition in 2014 at a cost of $23,000.

REQUIRED
Trace the effects of these events on the balance of the undepreciated capital cost accounts for the computer from 2013 through to the beginning balance for 2016 in the computer account. As you trace the effects, indicate all deductions from and inclusions in income from the business for the years indicated. Assume that the appropriate election is made.