Calculate the maximum CCA deduction allowed

Assignment Help Accounting Basics

Reference no: EM132736070

Question - You work for a corporation that has existed for several years; in prior years the business has invested in assets that have been grouped into the following CCA classes:

- Class 8, with an opening UCC balance of $200,000.00 for the current year;

- Class 50 with an opening UCC balance of nil;

During the current year an asset within the furniture and fixture class (that was added in a prior year) was sold. It was initially purchased for $20,000 was sold for proceeds of $15,000. Moreover, new couches were purchased for $44,000; they were available for use.

In addition, the company bought their first piece of real-estate for $1,000,000, of which $700,000 was allocated to land.The building was grouped in Class 1.

Calculate the maximum CCA deduction allowed, ending UCC balance(s), and confirm whether or not there is a capital gain or capital loss.

Explain what impact the accelerated investment incentive adjustment has on the timing of CCA deductions. In addition, explain whether or not it has any impact on the total amount of CCA claimed over the life of an asset.

Reference no: EM132736070

Questions Cloud

What amount should be included as foreign currency : In Hollywood's 2020 consolidated income statement, what amount should be included as foreign currency translation loss

Record the variances and close the overhead accounts : Record the variances and close the overhead accounts.VOH Spending Variance Variance$1500. Allocated Variable Overhead$18,000

Find the number of equivalent units of production : Find the number of equivalent units of production for the period for materials if the average cost method is used to cost inventories

Vision-mission and values of chosen healthcare organization : Identify at least two similarities and two differences in the vision, mission, and values of the chosen healthcare organization.

Calculate the maximum CCA deduction allowed : Calculate the maximum CCA deduction allowed, ending UCC balance(s), and confirm whether or not there is a capital gain or capital loss

What are earmarks in government expenditures : What are earmarks in government expenditures and what are their pros and cons? What is discretionary spending and what are their pros and cons?

Quantitative and qualitative research : You will review both quantitative and qualitative research. The topic is Cyber Security or any Security IT-related and peer-reviewed, academic research piece

How do the teams manage their team boundaries : How do the teams manage their team boundaries? What are the trade-offs between internal cohesion and external ties within each type of team?

What is the final amount due on the loan : Suppose you take out a loan for 180 days in the amount of $12,500 at 15% ordinary interest. What is the final amount due on the loan

User Account

All Pages