The UCC balances as at January 1, 2021, are: Class 1: $5,000,000 Class 8: $3,200,000 Class 10:
Question:
The UCC balances as at January 1, 2021, are:• Class 1: $5,000,000• Class 8: $3,200,000• Class 10: $400,000• Class 12: nil12. Deco has the following capital asset additions and disposals during the year:• On July 1, 2021, Deco implemented a new company policy to provide cars to its senior account managers. Deco purchased a luxury automobile for $70,000plus 13% HST on that date.• Deco replaced the roof on one of its warehouses for a cost of $300,000. For accounting purposes this cost was capitalized (and not expensed in the income statement).• Deco began outsourcing its deliveries to third parties as a means of costreduction. This resulted in its entire fleet of delivery trucks being sold off for proceeds of $250,000. The trucks originally cost $750,000.• New furniture and fixtures were acquired for $325,000 in the year. Old fixtures originally costing $150,000 were sold off for proceeds of $25,000.• Small tools with an aggregate cost of $450,000 were sold off for proceeds of$100,000.• For accounting purposes, the dispositions of the trucks, fixtures, and small tools resulted in a loss on disposal of assets of $122,000 on the income statement.13. Deco's Class 1 assets qualify for CCA at 6%.
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell