Should the cost be claimed as an expense or capitalized

Assignment Help Accounting Basics
Reference no: EM132757373

Question: Canadian taxation:

A couple of years ago, Ms. Smith received an inheritance and she decided to use that money to purchase two condominium units in the same development. Both units are finalized on January 2, 2018 and they were both rented out for the entirety of the 2018 taxation year.

The tenant that rented out the first property all year told Ms. Smith that she hated the colour of the carpet in the bedrooms. In order to keep the tenant happy, Ms. Smith paid to get the carpet replaced for $1,350.

Should this cost be claimed as an expense or capitalized? If capitalized, which CCA class and amount?

Reference no: EM132757373

Questions Cloud

What is the mathematical mean return for drg normal stock : What is the mathematical mean return for DRG's normal stock? The yearly returns for DRG's basic stock throughout the long term 2003, 2004, 2005
Examine the descriptive features in the dataset : The table below lists a dataset containing details of policy holders at an insurance company. The descriptive features included in the table describe each polic
Which is the righ way to calculate accounting rate of return : Which is the righ way to calculate Accounting rate of return? working capital required in year 1 - 120,000. working capital released in year 5 - 15,000
Create vector v with 10 random numbers : Create vector V with 10 random numbers between 0 and 1, and 2 decimals.
Should the cost be claimed as an expense or capitalized : A couple of years ago, Ms. Smith received an inheritance and she decided to use that money to purchase two condominium units in the same development.
Construct reconciliation from the opening balances : Construct reconciliation from opening balances to the ending balances of the defined benefit obligation and plan assets for the year ended December 31, 20X6.
Journalize the adjusting entry for each of accured expenses : Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording).
How does social media affect early childhood education : How does social media affect early childhood education?
Find what will total amount of contributions tax deducted : William's contributions have exceeded the contributions caps, what will be the total amount of contributions tax deducted by the super fund?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entry to record the retirement

Instructions - For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bonds

  Apachi company ended its fiscal year on july 31 2010 the

apachi company ended its fiscal year on july 31 2010. the companys adjusted trial balance as of the end of its fiscal

  Define tax haven and tax holiday

What are "Foreign Tax Credit,' "Foreign Tax Deduction," and "Foreign Tax Credit Limitation"? Define Tax Haven, Tax Holiday, and Effective Corporate Tax Rate

  What is each partner basis in the land distributed

The ABCD partnership has four partners. What is each partner's basis in the land distributed to the partner

  What is the after-tax cost of debt

The issue price will be $1,000. The tax rate is 25%. If the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt

  Wren co operates a chain of gift shops the company

wren co. operates a chain of gift shops. the company maintains a defines contribution pension plan for its employees.

  What would be the value of the option

Describe the effect on a call option's price caused by an increase in each of the following factors.

  Explain the accounting treatment and disclosures required

Explain the accounting treatment and disclosures required when a change is made in depreciation method.

  Paid the commercial paper at maturity

Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate.31 Recorded any necessary adjusting entry(s).

  What is the amount of tax Jacob will owe on the income

What is the amount of tax Jacob will owe on the income allocation if the income is quali?ed business income (OBI) and Jacob qualifies for the full QBI deduction

  How is the equity growth rate computed

Why is interest expense ignored when computing return on net operating assets (RNOA)? How is the equity growth rate computed? What does it measure?

  Compute the applied overhead for shaw for the year

Reid Shaw Company produces one product, a putter called GO-Putter. Compute the applied overhead for Shaw for the year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd