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For its taxation year ending December 31, 2019, Martin's Enterprises has the following Undepreciated Capital Cost (UCC) balances: Class 1 (Building Acquired in 2004) $876,000
For its taxation year ending December 31, 2019, Martin's Enterprises has the following Undepreciated Capital Cost (UCC) balances: Class 1 (Building Acquired in 2004) $876,000 Class 8 220,000 Class 10 95,000 Class 10.1 (Porsche - Cost $110,000) 25,500 Class 10.1 (Cadillac - Cost $45,000) 25,500 During 2019, the cost of additions to Class 10 amounted to $122,000, while the proceeds from dispositions in this class totaled $87,000. The capital cost of the assets retired totaled $118,000. None of the individual assets sold had proceeds of disposition that exceeded their individual capital cost. There were still assets in Class 10 on December 31, 2019. There were no acquisitions or dispositions in Class 1, 8 or 10.1 during 2019. The Company plans to sell the Porsche in January, 2020 and expects to receive about $75,000. Required: A. Calculate the maximum Capital Cost Allowance (CCA) that could be taken by Martin's Enterprises for the taxation year ending December 31, 2019. Your answer should include the maximum that can be deducted for each CCA class as well as the total amount of CCA that can be taken by Martin's Enterprises for the 2019 taxation year. For its taxation year ending December 31, 2019, Martin's Enterprises has the following Undepreciated Capital Cost (UCC) balances: Class 1 (Building Acquired in 2004) $876,000 Class 8 220,000 Class 10 95,000 Class 10.1 (Porsche - Cost $110,000) 25,500 Class 10.1 (Cadillac - Cost $45,000) 25,500 During 2019, the cost of additions to Class 10 amounted to $122,000, while the proceeds from dispositions in this class totaled $87,000. The capital cost of the assets retired totaled $118,000. None of the individual assets sold had proceeds of disposition that exceeded their individual capital cost. There were still assets in Class 10 on December 31, 2019. There were no acquisitions or dispositions in Class 1, 8 or 10.1 during 2019. The Company plans to sell the Porsche in January, 2020 and expects to receive about $75,000. Required: A. Calculate the maximum Capital Cost Allowance (CCA) that could be taken by Martin's Enterprises for the taxation year ending December 31, 2019. Your answer should include the maximum that can be deducted for each CCA class as well as the total amount of CCA that can be taken by Martin's Enterprises for the 2019 taxation year
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