Reference no: EM133002538
Question - Berry Ltd. has a taxation year which ends on December 31. On January 1, 2020, the Company had 10 assets in Class 10. The January 1, 2020 balance in this Class was $83,400. The capital cost of these 10 assets was $110,000. Subsequent transactions during the year are as follows:
On May 1, 2020, all of the original Class 10 assets are sold for $92,400.
On June 1, 2020, 10 new assets are acquired at a cost of $105,000.
On December 1, 2020, the 10 new assets are sold for $75,000.
On December 31, 2020, no assets remain in Class 10.
Required -
(i) Determine the January 1, 2021 UCC balance. Show your full calculations starting with the Beginning UCC.
(ii) Discuss the effect of these transactions on the Company's 2020 net business income.
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