Question
Old Time Company purchased a Class 10 vehicle many years ago for $8,000.The vehicle has now become a collectors' item and was sold on August
Old Time Company purchased a Class 10 vehicle many years ago for $8,000.The vehicle has now become a
collectors' item and was sold on August 1, 2018 for $10,000.The net book value on August 1, 2018 was $500 and
the Class 10 UCC balance was $1,000.There are other assets left in the class and no transaction for any class during
2019.Accounting net income before tax for the year ended December 31, 2019 was $20,000.Amortization of
depreciable capital assets for accounting purposes is equal to $50.Please calculate thenet income for tax purposes
for 2019. (4 marks)
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