Question: Is this correct? because i got a negative answer Dover Corporation bought a long-term asset for $125,000. The asset has a 25% CCA rate. At

Is this correct? because i got a negative answer

Dover Corporation bought a long-term asset for $125,000. The asset has a 25% CCA rate. At the end of year 5, the firm sold the asset for 25% of its original value. In the year of 2020, the firm just paid $520 in dividends and $311 in interest expense. The addition to retained earnings is $412.46. and net new equity is $850. The tax rate is 34 percent. Sales are $7,250 and depreciation is $6685.

Given this information, determine the value of the terminal loss or recapture at the end of the year

Year Beginning UCC CCA Ending UCC
(beginning UCC*25% CCA rate) (Beginning UCC CCA)
1 62,500 15,625 46,875
2 109,375 27,343 82,032
3 82,032 20,508 61,524
4 61,524 15,381 46,143
5 46,143 11,536 34,607
CCA recapture lower of selling price and original cost - ending UCC
(125,000*0.25) -34,607
31,240-34,607
-3367

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