Question
1) Kanata Construction specializes in large projects in Edmonton and Saskatoon. In 2021, Kanata invested $1.9 million in new excavating equipment, which qualifies for a
1) Kanata Construction specializes in large projects in Edmonton and Saskatoon. In 2021, Kanata invested $1.9 million in new excavating equipment, which qualifies for a CCA rate of 50%. At the same time the firm sold some older equipment on the secondhand market for $180,000. When it was purchased in 2018, the older equipment cost $480,000.
Calculate the UCC for the asset pool in each year from 2018 through 2022. (Round the final answers to 2 decimal places. Omit $ sign in your response.)
Year | CCA | Ending UCC |
2018 | $ | $ |
2019 | $ | $ |
2020 | $ | $ |
2021 | $ | $ |
2022 | $ | $ |
2) Our new computer system cost us $161,200. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10).
Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.)
Year | CCA | Ending UCC |
1 | $ | $ |
2 | $ | $ |
3 | $ | $ |
4 | $ | $ |
5 | $ | $ |
What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.)
After-tax proceeds $
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