i. Suppose your firm is considering buying a van costing $105,000. What is the Undepreciated capital cost (UCC) for the van after Six years. Note: the van falls in class 10 with a 30 percent CCA rate. Use the tabular approach when calculating the UCC after Six years.

a) Calculate the UCC at the end of year 6

b) If the Van is sold at $4500 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?

c) If the Van is sold at $55,000 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?

ii. John recently retired at the age of 62 years. Johns net worth is $500,000 and the fund is available for investment. John wants moderate (low-medium) capital growth, extensive capital preservation and income generation to keep up with day-to-day expenses. John wants moderate risk and since he is retired is now on a lower tax bracket. Propose an asset allocation policy for John. Consider the following asset classes; money market highly liquid investment, cyclical stocks, and defensive stocks.