User Account

All Pages

What is the maximum CCA claim on these improvements

Assignment Help Accounting Basics
Reference no: EM132751084

Questions -

Q1. Rushmore Ltd., with a tax year that ends on Dec 31, has a class 10 (30%) UCC balance on January 1, 2020 of $38000. During 2020, it acquired 20 class 10 cars that are eligible for the accelerated investment incentive. The total cost of all the cars was $155000. The Company also disposes of 15 cars for total proceeds of $61000. In no case did the proceeds of disposition exceed the capital cost of the vehicle being disposed of. Determine the maximum Class 10 CCA that Rushmore Ltd. can deduct for 2020. Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your response.

Q2- Sherry owned a rental property. She originally acquired the property for $260,000 with $200,000 of the cost attributed to the building.

Over the years, Sherry has claimed CCA of $32,000, such that her UCC at the beginning of the year was $168,000. The rental property is the only asset in the class.

This year, she sold the property for $214,000, with $160,000 of the sale price attributed to the building.

Which of the following statements is correct?

A. Sherry has a terminal loss of $8,000.

B. Sherry has a capital loss of $36,000.

C. Sherry has an allowable capital loss of $4,000.

D. Sherry has CCA recapture of $32,000.

Q3- On December 1 of the previous year, a corporation spends $126,000 on leasehold improvements to a building which it rents for use in its business activities.

The lease was signed in the previous taxation year and has a term of 10 years. There are two renewal options, each for a term of 3 years.

What is the maximum CCA claim on these improvements for the current taxation year, which ends December 31?

A. $12,600.

B. $9,692.

C. $4,846.

D. $6,300.

Reference no: EM132751084

Questions Cloud

Compute the adjusted capacity for the fixed resource : Compute the adjusted capacity for the committed / fixed resource. Ratliff Appliances Company makes a household appliance with model number RM16.
What was the total costs of lost units for aee company : AEE Company manufactures a product that passes in four departments in a continuous process, what was the total costs of lost units?
Determine the amount of depreciation expense for the years : Perdue Company purchased equipment on April 1 for $70,200. Determine the amount of depreciation expense for the years ended December
How much is the total partnership asset immediater : How much is the total partnership asset immediater alter its formation? Chris and Grace formed a partnership on March 1 of the cunent year
What is the maximum CCA claim on these improvements : What is the maximum CCA claim on these improvements for the current taxation year, which ends December 31
Some of the reasons for this population explosion : Globally, the human population is increasing exponentially. What are some of the reasons for this population explosion?
What is the annual interest you would earn : CASE ANALYSES - What is the annual interest you would earn, before taxes, on the municipal bond? On the corporate bond
Calculate how much the bond will be worth when it is issued : Bonds are issued at a premium because the market interest rate is 8 percent. Calculate how much the bond will be worth when it is issued
What income and losses do paris : What income and losses do Paris, Berlin, Derek, and Dawn report as a result of the current year's activities? If there is more than one possible method

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of cash received by dlsl inc as a result

BPI Inc. provides financing to other companies by purchasing accounts receivable, What is the amount of cash received by DLSL Inc. as a result of factoring?

  How much will cheswick corp report as bad debts expense

If bad debts are estimated at 1% of net sales, how much will Cheswick corp. report as bad debts expense for 2016

  Develop at least four hypothesis in various formats

Create four research objectives and four research Questions for above case. Develop at least four hypothesis in various formats

  How many balloons were in process at the end of january

The production process to make balloons began January with 20,000 balloons in process. How many balloons were in process at the END of January?

  Journalize the issuance of the stock in acquiring the land

Let Inc.'s $10 par value common stock is actively traded at a market price of $14 per share. Journalize the issuance of the stock in acquiring the land.

  What is the cost of the ending work in process

What is the cost of the ending work in process of the department? What is the cost of the units transferred to the next department

  Effect of the intra-entity sale

Senior sold all of these goods in 2011. How should Perez report the effect of the intra-entity sale on its 2011 income statement?

  What are potential risk associated with move toward adoption

What are the potential risks associated with a move toward the adoption of international accounting standards in a nation?

  How much income should be recognized by the employee

A department store sold a stereo to an employee for $265, How much income should be recognized by the employee from these transactions?

  Compute the earnings per share financial data

Comparative financial statements for Weller Corporation, a merchandising company, Compute the following financial data for this year: Earnings per share

  Regression model for individual respondents

You are considering opening an Estonian cuisine restaurant and wonder how much people in your target community spend on eating out relative to their incomes. You commission a telephone survey and build the following regression model for individual..

  What is the accounts receivable turnover

Balance Sheet: 2010 2009 - Total current assets 175,000 184,000. What is the quick ratio for 2010? What is the accounts receivable turnover for 2010

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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