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Lou Silva has owned and operated The Wellness Store for 15 years. The company's year end is December 31st. The following chart lists ht ecompany's
| Lou Silva has owned and operated The Wellness Store for 15 years. The company's year end is December 31st. | |||||||||
| The following chart lists ht ecompany's assets owned priot to 2020 and their UCC balances as of January 1, 2020. | |||||||||
| ASSET | UCC Balance | ||||||||
| Store (bldg purchades in 2005) (Class 1-4%) | 100,000.00 | ||||||||
| Delivery Van (Class 10) | 15,000.00 | ||||||||
| Furniture and office equipment (Class 8) | 30,000.00 | ||||||||
| Photocopier purchased in 2018 (separate Class 8) | 2,000.00 | ||||||||
| Patent (purchased in 2017) | 10,000.00 | ||||||||
| The following transactions took place in 2020: | |||||||||
| a. | Lou purchased $2,000 worth of small tools (each costing under $500) | ||||||||
| b. | The delivery van was wold for $12,000. The original cost was $20,000. A second-hand van was purchased in the year for $16,000. | ||||||||
| c. | $15,0000 was paid for an air conditioning system in the building, which was added to the cost of the standard Class 1 pool. | ||||||||
| d. | Lou sold the photocopier for $1,500 in the year, and will replace it in January, 2021 with a second-hand model valued at $1,700. | ||||||||
| e. | Lou amortizes the patent in Class 44. | ||||||||
| f. | The business acquired a franchise on March 1st of 2020 for $55,000. The franchise has a limited legal life of 20 years. (Ignore leap year effects.) | ||||||||
| What is the maximum CAA than can be claimed on the Store Building? | |||||||||
| What is the maximum CAA than can be claimed on the Delivery Van? | |||||||||
| What is the maximum CAA than can be claimed on the Furniture and Office Equipment? | |||||||||
| What is the maximum CAA than can be claimed on the Photocopier? | |||||||||
| What is the maximum CAA than can be claimed on the Patent? | |||||||||
| What is the maximum CAA than can be claimed on the Tools? | |||||||||
| What is the maximum CAA than can be claimed on the Franchise? | |||||||||
| What is the total Recapure incurred from this scenario? | |||||||||
| What is the total Terminal Loss incurred from this scenario? | |||||||||
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Financial accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
IFRS Edition
9781119153726, 978-1118285909
