CCA Calculations (15 marks)

ABC manufacturing had the following beginning UCC balances and transactions during the year ended on December 2019.

Beginning UCC for class 1, 8, 10 and 50 are shown below.

Class 1(4%), building	$125,000
Class 8, furniture	84,000
Class 10, truck	20,000
Class 50, computer	500

Additions during 2019:

1. The company purchased a new building for $130,000. This building is 100% used for manufacturing.

2. Furniture and fixtures purchased for $46,000.

3. BMW purchased for $60,000.

Disposal during 2019:

1. Furniture sold for $24,000 (cost was $22,000).

2. Old truck (class 10 item) sold for $25,000 (cost was $35,000).

3. Computer sold for $100 (cost was $5,000). This was the last item in the asset class.

Required: Calculate the CCA for each asset in 2019. Also, identify recapture and/or terminal loss. Use the following Schedule.

Class
Undepreciated capital cost (UCC) at the beginning of the period
Add: Additions
Deduct: Disposals
Balance
Add: Accll Adj.
Subtotal = CCA base
Rate (%)
Deduct: Capital cost allowance
Deduct: Accll Adj.
= Undepreciated capital cost (UCC) at the end of the period

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