Question: In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47,000 and the original cost was $50,000. Insurance proceeds

In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47,000 and the original cost was $50,000. Insurance proceeds of $55,000 were received for the market value in 2019. Pursuant to S.13(4), the taxpayer elected to defer the recapture. A new building was built in 2020 at a cost of $60,000. How much is the amended recapture in 2020?

Multiple Choice

$0
$13,000
$3,000
$8,000

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