NanoOne Materials, a BC based company, produces high performance cathode powders used in lithium-ion batteries. At the beginning of the fiscal year, the company has purchased a new equipment at the cost of $82,000 with estimated life of five years. The salvage value is estimated at $12,500. a) Use the double declining balance method, as well as the sum-of-years-digit method to determine:

i. Annual depreciation for each of the five years of estimated useful life of the equipment; [5 pts]

ii. The accumulated depreciation at the end of each year; [5 pts] iii. The book value at the end of each year; [5 pts]

b) Assuming that the equipment falls into CCA class 43 (CCA rate at 30%)

i. Determine the annual depreciation for tax purposes. [5 pts]

ii. In the first month of the forth year, the equipment was traded in for similar equipment priced at $77,000. The trade-in allowance was $18,000, and cash was paid for the balance. Calculate the CCA for Class 43 in the fourth year, and the UCC at the end of that year. [5 pts]

Note: If the market value is unknown for a given year, assume that the salvage value equals the trade-in value. Note: For new equipment, the 50% rule applies.