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Asset Type Item Lathe Building Photocopier Initial cost ($) 60,000 1,000,000 25,000 Book life (years) 12 40 5 CCA class 43 1 Salvage value ($)

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Asset Type Item Lathe Building Photocopier Initial cost ($) 60,000 1,000,000 25,000 Book life (years) 12 40 5 CCA class 43 1 Salvage value ($) 5,000 200,000 5,000 Book depreciation Double Declining Balance (DDB) Straight Line (SL) Straight Line (SL) (a) Using the book depreciation method as indicated in the table above: For the lathe, the depreciation amount in the first year of depreciation (D) is: $ and the book value at the end of the second year of depreciation (BV2) is: $ For the building, the depreciation amount in the first year of depreciation (D) is: $ and the book value at the end of the second year of depreciation (BV) is: $ For the photocopier, the depreciation amount in the third year of depreciation (D3) is: $ and the book value at the end of the fourth year of depreciation (BV4) is: $ (b) Using tax depreciation, answer the questions below: For the lathe, complete the following table with Capital Cost Allowances (CCAs) and Undepreciated Capital Costs (UCCs) for the first two years. Lathe Year CCA UCC 0 $60000 1 $ $ 2 2 $ $ . . For the building, the Capital Cost Allowance (CCA) for the first year is and the Capital Cost Allowance (CCA2) for the second year is e . For the photocopier the Capital Cost Allowance (CCA) for the first year is and the Capital Cost Allowance (CCA) for the second year is

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