Problem 4: Chapter 5 Instructions: The fiscal year of Chen Ltd., a Canadian public company, ends on December 31. On January 1, 2022, the UCC balances for the various classes of assets owned by the Company are as follows: Class Class 1 (4%) Asset Building UCC @ January 1, 2022 290000 Class 8 Office furniture and equipment 73000 Class 8 (separate Photocopier 19000 Class 10 Vehicles 120000 Class 10.1 Passenger vehicles over $30,000- Non 0 Class 12 Tools (Under $500 each) 6000 Class 13 Leasehold improvements 52500 Class 14 Intangible assets with limited life- no 0 Class 50 Computer hardware Class 53 Manufacturing equipment 19000 85000 The following additions were made this year: 1. On September 15, 2022, a convertible is acquired at a cost of $60000 for use by the Vice President of the Company as a passenger vehicle. 2. Some new furniture was purchased at a cost of $15000. 3. On May 1, 2022, Chen Ltd. pays $130000 to enter a franchise agreement. The life of the franchise is 15 years. 4. On November 3, 2022, $171000 of class 53 manufacturing equipment was purchased. 5. On January 1, 2022, $40000 of leasehold improvements were made. 6. New computer hardware was purchased for $16000. The following disposals were made this year: 1. The photocopier in the separate class 8 was disposed of for $4000. It was originally purchased for $30,000. 2. Some old furniture was sold for proceeds of $7500. It was originally purchased for $12000. 3. Some computer hardware was sold for $6000. It was originally purchased on sale for $2000. 4. Some tools (from class 12) were sold for proceeds of $8000. The original cost of these tools was $12,000.