Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 1: Shell Corp needs a calculation of its CCA for 2019, but unfortunately they have lost their records. Here are the assets and their

image text in transcribed

Part 1: Shell Corp needs a calculation of its CCA for 2019, but unfortunately they have lost their records. Here are the assets and their classes since 2016. Assume they have taken the maximum CCA in each year. Calculate the CCA for 2016, 2017, 2018, and then 2019. Show all years. Make note of any recapture, capital gain or terminal loss. Here are their asset records. Class 1 (4%) Office Building purchased in 2016 for $260,000, (ignore land). Class 10 (30%) Two cars were purchased in 2016 for $22,000 each. Two cars were purchased in 2017 for $18,000 each. One car was sold for $12,000. No cars were purchased or sold in 2018 In March 2019, the three remaining cars were sold for a total of $14,000. Class 50 (55%) A computer was purchased in 2015 for $20,000. CCA was taken each year, but in 2019 it was sold for $1 to a recycler. Class 12 (100%) Some tools were purchased at a cost of $500 in 2015. Half year rule does apply. Part 1: Shell Corp needs a calculation of its CCA for 2019, but unfortunately they have lost their records. Here are the assets and their classes since 2016. Assume they have taken the maximum CCA in each year. Calculate the CCA for 2016, 2017, 2018, and then 2019. Show all years. Make note of any recapture, capital gain or terminal loss. Here are their asset records. Class 1 (4%) Office Building purchased in 2016 for $260,000, (ignore land). Class 10 (30%) Two cars were purchased in 2016 for $22,000 each. Two cars were purchased in 2017 for $18,000 each. One car was sold for $12,000. No cars were purchased or sold in 2018 In March 2019, the three remaining cars were sold for a total of $14,000. Class 50 (55%) A computer was purchased in 2015 for $20,000. CCA was taken each year, but in 2019 it was sold for $1 to a recycler. Class 12 (100%) Some tools were purchased at a cost of $500 in 2015. Half year rule does apply

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money, Markets And Capital The Case For A Monetary Analysis

Authors: Jean Cartelier

1st Edition

0815355777, 9780815355779

More Books

Students also viewed these Accounting questions

Question

which of the following is true about decision trees

Answered: 1 week ago