13. In 2023, a corporation sells its business in an arm's length transaction for proceeds equal to FMV. At the time of the sale the business has accounts receivable of $123,000. The corporate vendor of the business and the purchaser agree that the realizable value of the receivables is $118,500. In 2022, the vendor had deducted a reserve for doubtful debts of $6,800. Which of the following statements is correct? A. If no joint election is filed under ITA 22, the vendor will have an addition to business income of $2,300. B. If no joint election is filed under ITA 22, the vendor will have an addition to business income of $6,800 and an allowable capital loss of $2,250. C. If a joint election is filed under ITA 22, the vendor will have a business deduction of $2,300. D. If a joint election is filed under ITA 22, the vendor will have a business deduction of $4,500. 14. During the current year, Denos Corporation incurred costs of $45,000 for leasehold improvements to its newly rented building. The lease was signed in the current year for an initial term of three years plus four successive options to renew the lease, each for an additional one-year term. Which one of the following amounts represents the maximum CCA claim in the current year? A. $13,500. B. $8,438. C. $27,000. D. $16,876. 15. Several years ago, Solea Company purchased a Mercedes Benz that is used exclusively for business use. The car is in Class 10.1. On January 1, 2023 the UCC balance is $17,850. On August 1, 2023 the car was sold for $17,000. The company uses a calendar-based taxation year ending December 31. What are the 2023 income tax consequences of the sale of the Class 10.1 vehicle? A. terminal loss of $850. B. recapture of $850. C. CCA deduction of $2,678. D. CCA deduction of $2,245. 16. Wolfe Ltd. has a December 31 taxation year end. It purchased a Class 10.1 automobile four years ago for $38,000 for use in its business. On January 1, 2023, the UCC for this Class 10.1 was $12,900. In 2023, it was sold for $10,000. What is the effect on its business income for 2023? A. No effect. B. Terminal loss of $2,900. C. Capital loss of $2,900. D. CCA claim of $1,935.