At the beginning of 2021, Marquee Inc. has two assets in Class 10. The January 1, 2021 UCC balance in this class is $7,423. The cost of each asset in the class was $7,500.

On June 30, 2021, one of the assets is sold for $7,950.

On Sept. 29, 2021 a new Class 10 asset was acquired for $9,500.

Required:

What are the tax implications and income effects of the disposition & addition on the Company's 2021 net income for tax purposes? Specifically, what types and amounts of income needs to be added to net income for tax purposes for 2021; how much CCA may be deducted for 2021?

In addition, determine the January 1, 2022 UCC balance for this Class 10. Show all supporting calculations in order to receive marks.

Show your answers & calculations as follows:

Final Answer:

Types and amounts of income added to Net Income for Tax Purposes for 2021:

How much CCA may be deducted in 2021: $

January 1, 2022 UCC balance = $