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Bob's Bookkeeping (BB), a public corporation, was established in 2015, is seeking your guidance on how to account for CCA as they really struggle with

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Bob's Bookkeeping (BB), a public corporation, was established in 2015, is seeking your guidance on how to account for CCA as they really struggle with taxes. On January 1, 2021, the UCC balances for the various classes of assets owned by the company are as follows: Class 1 (4%) $700,000 Class 8 (20%) 49,000 Class 10 (30%) 83,000 Class 50 (55%) 7,000 During 2021, the following transactions occurred: BB started to incur financial difficulties, so they arrived at the hard decision they needed to sell their building. It was originally purchased in 2015 and has always been utilized as mixed use: the first floor was commercial rent, and the second floor was residential rent. BB originally purchased the building for $868,000 and sold the building for $875,000. On February 15 they moved into a leased space, it has an original lease term of 6 years plus two renewal options of 1 year each. BB spent $22,000 on furniture (Class 8) and $35,000 on leasehold improvements (Class 13 - SL). The old office furniture was sold for $9,000 and capital cost of that furniture was $5,000. BB Inc, purchased an Audi A6 (Class 10.1) for driving to and from client appointments. It cost $70,000 inclusive of taxes. With the purchase of the Audi, they were able to sell their Toyota Corolla for $7.500 that had a capital cost of $24,000. Due to an HVAC failure in the server room, BB lost a very expensive server (Class 50) that they purchased recently, and it was the only asset in its class. The server was originally purchased for $16,300 and the insurance company refused to cover this claim. It is the policy of the company to claim maximum CCA in all years. Required (14 marks): 1. Calculate the maximum 2021 CCA that can be taken on each class of assets 2. Calculate the January 1, 2022 UCC balance for each class 3. Determine any other 2021 income inclusions or deductions resulting from the information provided in the problem 4. What is the impact of these transactions on Net Income for Tax Purposes in 2021

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