Kool Drinks Corporation purchased $300,000 worth of bottling machinery in 2019. Machinery falls under asset class 43 with a CCA rate of 30%. In 2021, Kool Drinks sold their machinery for $150,000 and moved their production to Mexico. Was there a capital gain, a CCA recapture or a terminal loss? What if the machinery was sold for $75,000?

Answer rating: 100% (QA)

Scenarios for Kool Drinks Corporation Scenario 1 Machinery sold for 150000 Capital Cost Allowance CC... View the full answer