Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

&Capital Cost Allowance, Terminal Loss, Recapture] Pinball machines fall into CCA Class 16, which has a 40%depreciation rate (d 0.4 Totally Tubular, a video arcade

image text in transcribed
&Capital Cost Allowance, Terminal Loss, Recapture] Pinball machines fall into CCA Class 16, which has a 40%depreciation rate (d 0.4 Totally Tubular, a video arcade made the following purchases and dispositions of pinball tables from 2014 to 2017. The starting UCC balance in 2014 was S0. Year Purchases Dispositions 2014 $1,000 2015 S0 $500 $0 2016 $2,000$2,000 $500 2017 $200 a. (8 marks) Use the information above to fill in the following table. (The table format and column headings were taken directly from examples in the textbook Adjustments to UCC Base UCC Amount for Capital Cost Allowance Remaining UCC from Purchases and Dispositions Capital Cost Allowance Year 2014 2015 2016 2017 b. (2 marks) Totally Tubular's (small business) tax rate is 12%. If the business disposed of the last of its Class 16 assets in 2017, by how much did its taxes for that year rise or fall due to terminal loss or recapture? (You may assume Totally Tubular's taxable income is over $9,000.) Totally Tubular's taxes went (up/down)_by $ Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

prepare a balance sheet workpaper with eliminations

Answered: 1 week ago