Course- introduction to taxation

1. A business disposed of an old passenger vehicle for $8000 that had an original cost of $35000 and an undepreciated cost (UCC) of $10000. At the same time, a new passenger vehicle was acquired for $45000 plus 13% HST. What is the maximum tax deduction for the year?

a. $15000 b. $15500

c. $16755

d. $13500

2. Class 14.1 would not include, as an asset...

a. Customer lists

b. Goodwill

c. A 40 year franchise agreement

d. An unlimited life insurance agreement