AP $5-4($CCA Calculations$)$

The calendar$-$based taxation year of the Bostik Manufacturing Company, a CCPC$,$ ends on December $31.$ On January $1,2023,$ the UCC balances for the various classes of depreciable property owned by the company were as follows:

Class I$$Building $($Note $1)$ $$342,000$

Class $80$ffice furniture

$66,000$

$225,000$

Class $10.$ I$$President$\text{'}$s car $16,500$

Class $13$LeasehoId improvements Class $14.$ I$$lntangible Property $26,125$

Class $50$Computer hardware $48,000$

Class $53$Manufacturing equipment $126,000$

Note $1$ The class $1$ building was acquired new in $2021$ for $$400,000.$ One hundred percent of its floor space was used for manufacturing and processing. In addition, the company filed a timely election to include the building in a separate class $1.$

In the $2023$ taxation year, the following purchases were made:

Class $80$ffice furniture $ $12,000$

$($Note $2)115,000$

Class $12$Tools $($Note $3)17,000$

Class $13$LeasehoId improvements $22,000$

Class $50$Computer hardware $11,000$

Note $2$ The purchased vehicle was a specialized delivery truck. A damaged delivery truck with an original capital cost of $$53,000$ was traded in on the purchase. The trade$-$in allowance was $$15,000.$

Note $3$ None of the tools that were acquired during the year cost more than $$500.$

During this same taxation year, the following dispositions also occurred:

Class $801$d$,$ well$-$used, and mismatched office furniture was donated to a local non profit organization. The capital cost of the furniture totalled $$35,000.$ The FMV was negligible.

Class $10.$ I$$Once the president of Bostik saw how high the taxable benefit on his BMW $650$ was, he ordered it sold. It had cost $$120,000$ in $2022.$ Because it had high mileage and was an unpopular colour, Bostik was able to sell it for only $$50,000.$

Class $53$Since the manufacturing equipment was technologically old and the new equipment would be leased, all the manufacturing equipment was sold for total proceeds of $$27,000.$ Its capital cost was $$450,000.$

Other Information:

The company leases one floor of a building for $$36,000$ per year. It houses the headquarters of Bostik, including the office of the president. The lease was negotiated on January $1,2020,$ and has an original term of five years. There are two renewal options of three years each on the lease. The company made $$38,000$ of leasehold improvements immediately after signing the lease. No further improvements were made until $2023.$

$2.$ On September $24,2023,$ one of the company's trucks fell into a sinkhole and disappeared. $($The driver was making a delivery at the time and captured the slow fall on his cell phone.$)$ At the time of the accident, the FMV of the truck was $$32,300.$ The proceeds from the company's insurance policy amounted to $$30,000.$ The capital cost of the truck was $$50,000.$

$3.$ In early $2023,$ one of Bostik's employees developed a unique manufacturing process that was sold to another manufacturer for $$100,000$ under an unlimited$-$life licence agreement. As no internal costs were allocated to this process, its capital cost was nil.

$4.$ It is the policy of the company to deduct maximum CCA each year.

$5.$ None of the vehicles or equipment purchased are zero$-$emission.

Required: Calculate the maximum $2023$ CCA that can be claimed on each class, the January $1,2024,$ UCC balance for each class, and any other $2023$ income tax implications resulting from the information provided. Ignore any GST$/$HST or PST considerations. Ignore the availability of immediate expensing.