Golden Dragon Ltd. begins operations in Vancouver on September 1, 2015. These operations include an elegant...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Golden Dragon Ltd. begins operations in Vancouver on September 1, 2015. These operations include an elegant sit down restaurant specializing in northern Chinese cuisine, as well as a take out operation that provides home delivery throughout the city. To facilitate this latter operation, iment Problem October 12, 2015, the company acquires 20 small cars to be used as delivery vehicles. The O of these cars is $12,000 each and, for purposes of calculating CCA, they are classified as Class 10 assets. During the first year of operations, the company establishes a fiscal year ending on December 31 Dhe fiscal periods 2016 through 2020, the following transactions take place with respect to the company's fleet of delivery cars: 2016 The company acquires five more cars at a cost of $12,500 each. In addition, three of the older cars are sold for total proceeds of $27,500. 2017 There are no new acquisitions of cars during this year. However, four of the older cars are sold for total proceeds of $38,000. 2018 In December 2018, 13 of the original cars and 3 of the newer cars are sold for $128,000. It was the intent of the company to replace these cars. However, because of a delay in delivery by the car dealer, the replacement did not occur until January 2019. 2019 In January 2019, the company takes possession of 25 new delivery cars at a cost of $16,000 each. No cars are disposed of during 2019. 2020 In March 2020, there is a change in management at Golden Dragon Ltd. They conclude that the company's take out operation is not in keeping with the more elegant image that the sit down restaurant is trying to maintain. As a consequence, the take out operation is closed, and the 27 remaining delivery cars are sold. Because of the large number of cars being sold, the total proceeds are only $185,000. Golden Dragon Ltd. takes maximum CCA in each of the years under consideration. Required: For each of the fiscal years 2015 through 2020, calculate CCA, recapture, or ter- minal loss for Golden Dragon's fleet of cars. In addition, indicate the January 1 UCC for each of the years 2016 through 2021. NOTE Prior to 2019, the half-year rule was in effect. For 2019 and 2020, the Accll provisions are available. Golden Dragon Ltd. begins operations in Vancouver on September 1, 2015. These operations include an elegant sit down restaurant specializing in northern Chinese cuisine, as well as a take out operation that provides home delivery throughout the city. To facilitate this latter operation, iment Problem October 12, 2015, the company acquires 20 small cars to be used as delivery vehicles. The O of these cars is $12,000 each and, for purposes of calculating CCA, they are classified as Class 10 assets. During the first year of operations, the company establishes a fiscal year ending on December 31 Dhe fiscal periods 2016 through 2020, the following transactions take place with respect to the company's fleet of delivery cars: 2016 The company acquires five more cars at a cost of $12,500 each. In addition, three of the older cars are sold for total proceeds of $27,500. 2017 There are no new acquisitions of cars during this year. However, four of the older cars are sold for total proceeds of $38,000. 2018 In December 2018, 13 of the original cars and 3 of the newer cars are sold for $128,000. It was the intent of the company to replace these cars. However, because of a delay in delivery by the car dealer, the replacement did not occur until January 2019. 2019 In January 2019, the company takes possession of 25 new delivery cars at a cost of $16,000 each. No cars are disposed of during 2019. 2020 In March 2020, there is a change in management at Golden Dragon Ltd. They conclude that the company's take out operation is not in keeping with the more elegant image that the sit down restaurant is trying to maintain. As a consequence, the take out operation is closed, and the 27 remaining delivery cars are sold. Because of the large number of cars being sold, the total proceeds are only $185,000. Golden Dragon Ltd. takes maximum CCA in each of the years under consideration. Required: For each of the fiscal years 2015 through 2020, calculate CCA, recapture, or ter- minal loss for Golden Dragon's fleet of cars. In addition, indicate the January 1 UCC for each of the years 2016 through 2021. NOTE Prior to 2019, the half-year rule was in effect. For 2019 and 2020, the Accll provisions are available.
Expert Answer:
Answer rating: 100% (QA)
We have a given Cost of cars is 12000 Now we will calculate the CCA and profit or loss for the fisca... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these general management questions
-
The circuit of Fig. 4.46c is to be used as a band-gap reference. If the op amp is ideal, its differential input voltage and current are both zero and V OUT = (V BE1 + I 1 R 1 ) = (V BE1 + I 2 R 2 ) V...
-
A steel bar of thickness h, to be used as a beam, is welded to a vertical support by two fillet welds as shown in the figure. (a) Find the safe bending force F if the allowable shear stress in the...
-
A steel bar of thickness h, to be used as a beam, is welded to a vertical support by two fillet welds as shown in the figure. (a) Find the safe bending force F if the allowable shear stress in the...
-
Are there accomplishments for which you individually receive credit which others helped you accomplish?
-
Timothy T. Rash, head statistician for the Chicago City Sanitation Department is interested in knowing if a set of new Big-Gulp Garbage trucks are permitting his workers to be more efficient. As a...
-
Jian Sham opened his Construction Repair Shop in April 2023. The balance sheet at April 30, 2023 was prepared by a friend of his and is shown below. Prepare a corrected balance sheet. Assets...
-
Calculate \(3.45 \div 2.341\) using a calculator. Round to three decimal places if necessary.
-
Classification IssuesIntangibles) Presented below and on the next page is a list of items that could be included in the intangible assets section of the balance sheet. 1. Investment in a subsidiary...
-
7. The balance sheet of Epsom Services included the following shareholders' equity section at December 31, 2021: ($ in millions) ($ in millions ) Common stock ($1 par value, authorized 100 million...
-
Tesla Motors, Inc. is in the business of developing, manufacturing, and selling technology for high-performance electric automotive and powertrain components. Hoping to develop a greater worldwide...
-
What legal and ethical considerations should a counsellor be aware of when working with self-harm and suicidal behaviours?
-
Counseling Services Goals: Observe activities in a school counseling office. The intern should interview both the mentor and at least one counselor about their respective roles in supporting student...
-
Experiential journal post JENNIFER SMITH Executive Director, National Indigenous Media Arts Coalition Jennifer Smith is a Red River Mtis independent curator, writer, and arts administrator from...
-
On April 1, 2025, Larkspur Company sold 30,600 of its 12%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of...
-
Use CHCH Canada. Instructions: Gather your interview notes and conduct additional research and create a report on the step-by-step processof the work of someone inthe media arts...
-
how can you explain the presence of traits that clearly give the organism a disadvantage for survival.?
-
The interest-rate-based approach to the monetary policytransmission mechanism says that a change in the money supplyinfluences aggregate demand by A: a change in interest rates, which changes...
-
Government is advised to tax goods whose demand curves are inelastic if the goal is to raise tax revenues. If the goal is to discourage consumption, then it ought to tax goods whose demand curves are...
-
What are the five fund types within the governmental funds? What types of events does each of these report?
-
Multiple Choice Questions 1. McKinley, Inc., owns 100 percent of Jackson Companys 45,000 voting shares. On June 30, McKinleys internal accounting records show a $192,000 equity method adjusted...
-
Search the Internet for the official website of one or more state or local governments. After reviewing this website, determine whether the latest comprehensive annual financial report (CAFR) is...
-
For the following sets of functions: (i) show that each is orthogonal on the given interval, and (ii) determine the corresponding orthonormal set. a. \(\{\sin 2 n x\}, \quad n=1,2,3, \ldots, \quad 0...
-
Consider the square wave function \[f(x)=\left\{\begin{array}{rc} 1, & 0
-
Consider \(f(x)=4 \sin ^{3} 2 x\). a. Derive the trigonometric identity giving \(\sin ^{3} \theta\) in terms of \(\sin \theta\) and \(\sin 3 \theta\) using DeMoivre's Formula. b. Find the Fourier...
Study smarter with the SolutionInn App