Instructions:

The fiscal year of Chen Ltd$.,$ a Canadian public company, ends on December $31.$ On January $1,2023,$ the UCC balances for the various classes of assets owned by the Company are as follows:

Class Asset UCC @ January $1,2023$

Class $1(4\%)$ Building $290000$

Class $8$ Office furniture and equipment $70000$

Class $8($separate$)$ Photocopier $20000$

Class $10$ Vehicles $122000$

Class $10\mathrm{.}1$ Passenger vehicles over $$36,000-$ None $0$

Class $12$ Tools $($Under $$500$ each$)6000$

Class $13$ Leasehold improvements $52500$

Class $14$ Intangible assets with limited life$-$ none $0$

Class $50$ Computer hardware $20000$

Class $53$ Manufacturing equipment $80000$

The following additions were made this year:

$1.$ On September $15,2023,$ a convertible is acquired at a cost of $$60000$ for use by the Vice President of the Company as a passenger vehicle.

$2.$ Some new furniture was purchased at a cost of $$14000.$

$3.$ On May $1,2023,$ Chen Ltd$.$ pays $$140000$ to enter a franchise agreement. The life of the franchise is $15$ years.

$4.$ On November $3,2023,$ $$164000$ of class $53$ manufacturing equipment was purchased.

$5.$ On January $1,2023,$ $$40000$ of leasehold improvements were made.

$6.$ New computer hardware was purchased for $$17000.$

The following disposals were made this year:

$1.$ The photocopier in the separate class $8$ was disposed of for $$3000.$ It was originally purchased for $$30,000.$

$2.$ Some old furniture was sold for proceeds of $$7000.$ It was originally purchased for $$11000.$

$3.$ Some computer hardware was sold for $$7000.$ It was originally purchased on sale for $$2500.$

$4.$ Some tools $($from class $12)$ were sold for proceeds of $$8000.$ The original cost of these tools was $$12,000.$

Other notes & information:

$1.$ The Company leases a building for $$15,000$ per year that houses a portion of its manufacturing operations. The lease was negotiated on January $1,2018$ and has an original term of $10$ years. There is one renewal option on the lease, for a period of two years. The company made $$84,000$ of leasehold improvements immediately after signing the lease. No further improvements were made until the current year.

$2.$ It is the policy of the Company to deduct maximum CCA in all years.

Required: Calculate the maximum $2023$ CCA that can be taken on each class of assets, the January $1,2024$ UCC balance for each class, and any other $2023$ inclusions or deductions resulting from the information provided in the problem. Respond on the $"$P$4-$ Response" tab. Final answers should be filled in the yellow boxes on the "answer summary" and the "effect on net income summary" in the $"$P$4-$ Response" tab. You are required to show any additional work completed in the green space on the $"$P$4-$ Response" tab in the excel document.Put all of your final answers in the answer summary $($in yellow$)$ and show all your work to get to these answers in the green space below.

Where the answer is zerolnil, do not wite $"Ni{l}^T.$ Please vrite only $0$ as a response where zerolnil applies.

Answer summary$-$ enter your final answers in here$-$ in the yellow boues:

Show your rork belon lin the green$-$required for this questionl: