A proprietorship is changing its business operations and therefore sells most of its assets in class 12; however, it continues to hold some class 12 assets. The disposition results in a credit UCC balance in class 12. Which of the following statements is correct?
1) The proprietorship will have a recapture of CCA in class 12
2) The proprietorship will have a terminal loss in class 12
3) The proprietorship will have a capital gain in class 12
4) The proprietorship will have a capital loss in class 12