PART A: Happy House Cleaning Inc. ("HHC") was incorporated on May 5, 2020 to provide on-demand house cleaning services. At the time of incorporation, HHC establishes December 31 as its year-end for both tax and accounting purposes. On May 9, 2020, HHC purchased nine cars (CCA Class 10; 30% rate) to be used by the cleaning personnel at a cost of $23,000 per vehicle. On December 2, 2021, HHC trades in two of its old cars for three new minivans. The list price of the new minivans is $28,000 per vehicle and HHC receives a trade-in allowance towards this list price of $12,000 per old vehicle. HHC paid cash for the remaining balance. -REQUIRED Calculate the maximum Class 10 CCA that can be deducted for the years ending December 31, 2020 and 2021. Ignore the leap year. Calculate the opening UCC balance for the following 2022 year. PART B: Cool Rugs Inc., "The Company", has a December 31 year-end. On January 1, 2021, The Company's Class 13 UCC balance is $350,000. This opening balance represents leasehold improvements of $600.000 made during 2019. The three-year lease was negotiated in 2019. It has four renewal options, each for three years. No other leasehold improvements were made until November 2021. During November 2021, The Company made further leasehold improvements of $300,000 ---REQUIRED Calculate the maximum Class 13 CCA that can be deducted for the year ending December 31, 2021. Calculate the opening UCC balances for the following 2022 year. PART A: Happy House Cleaning Inc. ("HHC") was incorporated on May 5, 2020 to provide on-demand house cleaning services. At the time of incorporation, HHC establishes December 31 as its year-end for both tax and accounting purposes. On May 9, 2020, HHC purchased nine cars (CCA Class 10; 30% rate) to be used by the cleaning personnel at a cost of $23,000 per vehicle. On December 2, 2021, HHC trades in two of its old cars for three new minivans. The list price of the new minivans is $28,000 per vehicle and HHC receives a trade-in allowance towards this list price of $12,000 per old vehicle. HHC paid cash for the remaining balance. -REQUIRED Calculate the maximum Class 10 CCA that can be deducted for the years ending December 31, 2020 and 2021. Ignore the leap year. Calculate the opening UCC balance for the following 2022 year. PART B: Cool Rugs Inc., "The Company", has a December 31 year-end. On January 1, 2021, The Company's Class 13 UCC balance is $350,000. This opening balance represents leasehold improvements of $600.000 made during 2019. The three-year lease was negotiated in 2019. It has four renewal options, each for three years. No other leasehold improvements were made until November 2021. During November 2021, The Company made further leasehold improvements of $300,000 ---REQUIRED Calculate the maximum Class 13 CCA that can be deducted for the year ending December 31, 2021. Calculate the opening UCC balances for the following 2022 year
