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Exercise Five - 1 For each of the following depreciable assets, indicate the appropriate CCA Class. (The Appendix to this Chapter contains a listing of

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Exercise Five - 1 For each of the following depreciable assets, indicate the appropriate CCA Class. (The Appendix to this Chapter contains a listing of CCA classes.) Taxicab Manufacturing and processing equipment acquired in 2011 Franchise with a limited life Automobile (i.e., passenger vehicle) with a cost of $120,000 Water storage tank Photocopy machine Leasehold improvements Residential rental property acquired in 2006 for $150,000 (Value of land equals $50,000) Class 45, 50 And 52 - Computer Hardware And Systems Software CCA classes and rates for computer hardware and systems software are as follows: Acquisition Date Class Rate After March 22, 2004, Before March 19, 2007 45 45% Declining Bal. After March 18, 2007, Before Jan. 28, 2009 50 55% Declining Bal. After Jan. 27, 2009, Before Feb 1, 2011 52 100% Write-Off After January 31, 2011 50 55% Declining Bal. No application of the half-year rules. The fact that there are different classes for computers provides a good example of the government's approach to changing CCA rates. Prior to March 23, 2004, computer hardware was included in Class 10 (30 percent rate). The government concluded that this rate was too low. Rather than change the rate on Class 10 (which includes vehi. cles), they dealt with this problers by indicating that computer hardware acquired after March 22, 2004 should be allocated to new Class 45 (45 percent rate), computer hardware acquired after March 18, 2007 should be allocated to new Class 50, 55 percent rate) and computer hardware acquired between January 28, 2009 and January 31, 2011 should be allocated to new Class 52 with a 100 percent write-off. Since the March 22, 2011 budget did not extend the use of Class 52 beyond January 31, 2011, computer hardware will once again be allocated to Class 50. The advantage of this approach is that it avoids having to apply the new rates on a retroactive basis to computers that were acquired before the changes took place Exercise Five - 1 For each of the following depreciable assets, indicate the appropriate CCA Class (The Appendix to this Chapter contains a listing of CCA classes. - Taxicab Manufacturing and processing equipment acquired in 2011 - Franchise with a limited lite Automobile i.e., passenger vehicle with a cost of $120,000 Water storage tank Photocopy machine Leasehold improvements Subiect: Spousal Tax Credit

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