ASSIGNMENT 5 In the 2020 taxation year, Mr. Ashley owns the following rental properties: Class Capital Cost $ 150,000 Undepreciated Capital Cost $ 98,000 1 3 600,000 450,000 3 500,000 350,000 370,000 3 (sold in year) 32 420,000 500,000 320,000 $1.588.000 $2.170.000 During the year, two rental properties were sold. The building indicated in class 3 above was sold for gross proceeds of $40,000. Selling costs totalled $10,000. The building in class 1 was also sold. The capital cost and net proceeds were $150,000 and $85,000, respectively. The rental income earned on each property, before claiming capital cost allowance, during the year was as follows: Deductible Expenses Class $ 11,000 1 (prior to sale) 3 Rental Revenue $ 29,000 20,000 40,000 35,000 29,000 3 25,000 20,000 3 (prior to sale) 32 6,000 30,000 $120,000 $125.000 REQUIRED: i) Calculate the maximum capital cost allowance that may be claimed in computing Mr. Ashley's income from property for the year. Show all calculations. ASSIGNMENT 5 In the 2020 taxation year, Mr. Ashley owns the following rental properties: Class Capital Cost $ 150,000 Undepreciated Capital Cost $ 98,000 1 3 600,000 450,000 3 500,000 350,000 370,000 3 (sold in year) 32 420,000 500,000 320,000 $1.588.000 $2.170.000 During the year, two rental properties were sold. The building indicated in class 3 above was sold for gross proceeds of $40,000. Selling costs totalled $10,000. The building in class 1 was also sold. The capital cost and net proceeds were $150,000 and $85,000, respectively. The rental income earned on each property, before claiming capital cost allowance, during the year was as follows: Deductible Expenses Class $ 11,000 1 (prior to sale) 3 Rental Revenue $ 29,000 20,000 40,000 35,000 29,000 3 25,000 20,000 3 (prior to sale) 32 6,000 30,000 $120,000 $125.000 REQUIRED: i) Calculate the maximum capital cost allowance that may be claimed in computing Mr. Ashley's income from property for the year. Show all calculations