A. CCA - Simplest Version - No Addition; No Disposition Rondo Ltd. has a December 31 year end. On January 1, 2019, its class 8 balance is $10,000. Assume the $10,000 asset was acquired a few years ago but no CCA (tax depreciation) has been taken in the past. During the year, no class 8 property was acquired or disposed of. Class 8 CCA rate is 20%. 2019 CCA deduction from income from business or property): $10,000 - 20% = $2,000 UCC on 1/1/2020 = $10,000 - $2,000 = $8,000 Note there is no time proration (as in accounting) except for short fiscal years, which occurs only in the first year (incorporation), last year (corporate wind-up or bankruptcy), or certain unusual occrences (e.g. amalgamations, deemed year-end on change of control, etc.). Year 2019 Undepreciated Capital Allowance @ Beg of Year (UCC) 10,000.00 8,000.00 6,400.00 5,120.00 4,096.00 3,276.80 Maximum Capital Cost I Allowance: e.g. 20% (CCA) 2,000.00 1,600.00 1,280.00 1,024,00 2020 Undepreciated Capital Allowance @ End of Year (UCC) 8,000.00 6,400.00 5,120.00 4,096.00 3,276.80 2,621.44 2021 2022 2023 819.20 2024 655.36 Eventually (after a long period of time), if no asset in this class is bought or sold in the future: What will the UCC become? What will the CCA become? In aggregate, how much would the taxpayer (Rondo Ltd.) deduct as CCA over the life of the asset? If the asset were not one item of $10,000, but was made up of several items of different amounts that totalled $10,000, that were acquired at different times in the past, but no CCA had ever been taken previously (e.g. the company was not taxable or had other tax credits to utilize), how would the table differ? o Not different. Same table as above o CCA deduction is optional / discretionary