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Question - A business has assets in three classes. As of the 1st of January 2021 the balances in each of the classes are:
original cost
UCC
Class 8
$27,000
$18,000
Class 12
5,500
0
Class 50
38,000
30,000
During 2021 the business had the following transactions for CCA assets:
Class 8 - disposals: $6,000 sales proceeds; additions: $13,000
Class 12 - disposals: none; additions: $400
Class 50 - disposals: none; additions: $22,000
Required -
(a) What is the maximum allowable CCA deduction for 2021?
(b) Assuming the maximum allowable CCA deduction is taken in 2021, what is the total of UCC balances at 31st December 2021 for all classes?
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