Modified problem 8.30 from page 470 of the textbook, which now reads: "A manufacturing company has purchased three assets: Asset Type Item Lathe Building Photocopier Initial cost ($) 60.000 1,000,000 25,000 Book life (years) 12 40 5 ICCA class 43 1 8 Salvage value ($) 5,000 200,000 5.000 Book depreciation Double Declining Balance (DDB) Straight Line (SL) Straight Line (SL) (a) Using the book depreciation method as indicated in the table above: For the lathe, the depreciation amount in the first year of depreciation (D1) is: $ and the book value at the end of the second year of depreciation (BV2) is: $ For the building, the depreciation amount in the first year of depreciation (D1) is: $ and the book value at the end of the second year of depreciation (BV2) is: $ For the photocopier, the depreciation amount in the third year of depreciation (D3) is: $ and the book value at the end of the fourth year of depreciation (BV4) is: $ (b) Using tax depreciation, answer the questions below: For the lathe, complete the following table with Capital Cost Allowances (CCAs) and Undepreciated Capital Costs (UCCs) for the first two years. Lathe Year CCA UCC lo $60000 1 $ $ 12 $ S For the building, the Capital Cost Allowance (CCA1) for the first year is and the Capital Cost Allowance (CCA) for the second year is For the photocopier, the Capital Cost Allowance (CCA1) for the first year is . and the Capital Cost Allowance (CCA2) for the second year is Modified problem 8.30 from page 470 of the textbook, which now reads: "A manufacturing company has purchased three assets: Asset Type Item Lathe Building Photocopier Initial cost ($) 60.000 1,000,000 25,000 Book life (years) 12 40 5 ICCA class 43 1 8 Salvage value ($) 5,000 200,000 5.000 Book depreciation Double Declining Balance (DDB) Straight Line (SL) Straight Line (SL) (a) Using the book depreciation method as indicated in the table above: For the lathe, the depreciation amount in the first year of depreciation (D1) is: $ and the book value at the end of the second year of depreciation (BV2) is: $ For the building, the depreciation amount in the first year of depreciation (D1) is: $ and the book value at the end of the second year of depreciation (BV2) is: $ For the photocopier, the depreciation amount in the third year of depreciation (D3) is: $ and the book value at the end of the fourth year of depreciation (BV4) is: $ (b) Using tax depreciation, answer the questions below: For the lathe, complete the following table with Capital Cost Allowances (CCAs) and Undepreciated Capital Costs (UCCs) for the first two years. Lathe Year CCA UCC lo $60000 1 $ $ 12 $ S For the building, the Capital Cost Allowance (CCA1) for the first year is and the Capital Cost Allowance (CCA) for the second year is For the photocopier, the Capital Cost Allowance (CCA1) for the first year is . and the Capital Cost Allowance (CCA2) for the second year is
