Question
Consider the following sequence of depreciable property (Class 43, CCA Rate 30%) purchases and sales by a given firm. Construct a table of total Class
Consider the following sequence of depreciable property (Class 43, CCA Rate 30%) purchases and sales by a given firm. Construct a table of total Class 43 Undepreciated Capital Cost (UCC) and Capital Cost Allowance (CCA) for years 1..5. You do not need to incorporate disposal tax effect into this calculation. (Hint: your calculation will likely include the following: UCC at beginning of period, Cost of Acquisitions, Proceeds of Dispositions, UCC, 50% Rule, Reduced UCC, CCA, UCC at end of period) a. Machine A purchased for $100,000 in the middle of year 1, placed into service immediately, sold for $40,000 in the middle of year 2. b. Machine B purchased for $80,000 in the middle of year 2, placed into service immediately, sold for $55,000 in the middle of year 4. c. Machine C purchased for $110,000 in the middle of year 3, still owned at the end of 5 years.
(DONT USE EXCEL)
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