CLASS8

CLASS 10

CLASS 13

SUMMERY

8 (12 MARKS) Vance Enterprises closes its books on December 31 of each year. On January 1, 2023, the following informatin....... Typ Equi Buil Aut During me 0S tiscal year, the following transactions occur: - Sale Of Equipment - As the result of an extensive analysis, it is decided that it would be better to sell the existing equipment and to replace it with improved equipment. The equipment is sold for $21,000. Additions were made of $35,000. - Sale Of Buildings - A similar decision is made with respect to the buildings. They are sold for $342,000 and replaced with leased premises. Of the $342,000 received, $80,000 is for the land on which the buildings are situated. The adjusted cost base of the land was equal to the $80,000 proceeds of disposition. The lease term is for four years with no options for renewal. However, a total of $39,000 is spent on leasehold improvements (Class 13 - Straight Line) to make the buildings more suitable for the business. - Sale Of Automobile - The automobile is used by Ms. Vance for both business and personal matters. It is sold during the current year and replaced with a leased vehicle. The sale proceeds are $8,900. Required: For the taxation year ending December 31, 2023 calculate the maximum CCA that can be deducted by Vance Enterprises for each CCA class. In addition, calculate the Janury 1 2024 UCC balances and indicate any other tax consequences that would result from the described transactions. CLASS 8