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

The calendar$-$based taxation year of the Bostik Manufacturing Company, a CCPC$,$ ends on Decem

ber $31.$ On January $1,2023,$ the UCC balances for the various classes of depreciable propert

owned by the company were as follows:

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:

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 $8-$Old, 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 $10\mathrm{.}1-$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 $2023.$

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.$

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.

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

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.