Question 1(1 point)

A corporation purchased a new Hummer (cost $45,000 plus sales tax) for the presidents personal use. Ignoring sales taxes, the maximum it can add to the appropriate CCA class is:

Question 1 options:

$45,000 to class 10

$45,000 to class 10.1

$30,000 to class 10

$30,000 to class 10.1

none of the above

Question 2(1 point)

Corporation UUU reported a gain on the disposal of equipment on its 2015 income statement. For tax purposes the gain is:

Question 2 options:

added back to reported accounting income

deducted from reported accounting income

added to the appropriate CCA class

deducted from the appropriate CCA class

none of the above

Question 3(1 point)

A recapture must be included in income:

Question 3 options:

when a depreciable property is disposed of for more than its cost

when a depreciable property is sold for less than its capital cost

when there is a positive balance in a CCA class at the year-end

when there is a negative balance in a CCA class at the year-end

none of the above