Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A sole proprietor has owned and operated their business for several years. The following lists the company's assets owned prior to 2020 and their UCC
A sole proprietor has owned and operated their business for several years. The following lists the company's assets owned prior to 2020 and their UCC balances as of January 1, 2020. Asset orig cost UCC Building $385,000 $250,000 Vehicle 29,500 24,000 Photocopier 2,950 1,800 Additional information: Purchased $1,700 worth of small tools (each costing under $500). Paid $23,000 for an air conditioning system added to the building. Vehicle was sold for $27,000. The original cost was $35,000. Photocopier was sold for $1,000 in the year, to be replaced in January, 2021 with a new model priced at $2,700. A) What is the total CCA that the sole proprietor can claim in 2020? B) What was the capital gain amount, if any? C) What was the recapture amount, if any? D) What was the terminal loss amount, if any? A sole proprietor has owned and operated their business for several years. The following lists the company's assets owned prior to 2020 and their UCC balances as of January 1, 2020. Asset orig cost UCC Building $385,000 $250,000 Vehicle 29,500 24,000 Photocopier 2,950 1,800 Additional information: Purchased $1,700 worth of small tools (each costing under $500). Paid $23,000 for an air conditioning system added to the building. Vehicle was sold for $27,000. The original cost was $35,000. Photocopier was sold for $1,000 in the year, to be replaced in January, 2021 with a new model priced at $2,700. A) What is the total CCA that the sole proprietor can claim in 2020? B) What was the capital gain amount, if any? C) What was the recapture amount, if any? D) What was the terminal loss amount, if any
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started