Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Chazerai Ltd. is engaged in manufacturing and processing, which is 95% of their business, with a December 31 year-end. On January 1, 2020, the undepreciated
Chazerai Ltd. is engaged in manufacturing and processing, which is 95% of their business, with a December 31 year-end. On January 1, 2020, the undepreciated capital cost for each class of its assets was as follows Class 1 - building $316.558 (10%) Class 8 - office furniture and equipment 60.000 (20%) 175,000 Class 13 - leasehold improvements The following additional information was found in the 2020 audit files: 1. The building, which cost $564,309 in 2014, was sold for $260,000. It was the only builbing in Class 1 at the time of its sale. The underlying land was sold for proceeds equal to the original cost 2. New office furniture (Class 8) was purchased for $20,000. This purchase replaced oid asses which were sold for $5,000. None of the old assets were sold for more than original cost 3. The opening balance in Class 13 represents leasehold improvements of $210,000 made during August 2018 to the leased warehouse with a lease term of 7 years and two successive 2 year renewal terms. 4. A new Class 10.1 (30% CCA rate) automobile was purchased for $45,200, which included HST of $5,200 (13%). Required: Prepare a schedule to show the maximum deductions for tax purposes available to Chazera Labr 200 based on the above information. Clearly show the following: Total CCA that can be claimed in 2020, UCC balances as of December 31, 2020, . Any recapture and/or terminal loss that occurred during the year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started