38.If a business asset with a capital cost of $100,000 and a UCC of $80,000 is converted to personal use ata time when its fair market value is $150,000, which of the following statements is NOTcorrect?39.Arnold Swartz converted his principal residence into a rental property after having lived in it for 5years. He has not been able to find a tenant during the current year. The house had cost $1 million. Atthe time of conversion, the property had a fair market value of $1.4 million. What is the UCC balancein the rental property’s Class 1 before any CCA is taken?A.$1,000,000B.$1,200,000C.$1,400,000D.NilChange In Use - Principal Residence Elections40.Susan Cousins purchased a house in Oshawa in March, 2014, for $250,000 (land; $80,000, building;$170,000). Even though Susan would be unable to reside in the house immediately, she felt it was avery good price and did not want to miss the opportunity to own this house. She rented out the houseas of April, 2014. Her tenants will move out in December, 2015, and she will move into her house inJanuary, 2016. The fair market value of the house at January 1, 2016 was $300,000 (land; $130,000,building; $170,000). The UCC of the house on this date is $163,000.Which of the following is correct?