Question 6 Elaine Beam owns an apartment building, which she holds for rental income. In November 2018, Elaine settled with municipal authorities on expropriation proceeds for the property, including the building. The agreed expropriation proceeds for the Class 1 building and the separate sale proceeds for the Class 8 appliances and fixtures are indicated in the following data: Expropriated Appliances Building & Fixtures $406,000 $26,000 Cost UCC, January 1, 2018 $188,500 $7,250 Proceeds $362,500 $2,600 Since negotiations had been prolonged, Elaine was able to anticipate the approximate date of settlement and, as a result, in 2019, she was able to replace the assets expropriated. Replacement cost for the building and the cost of new appliances and fixtures were as follows: Class 1 Building........ $1,276,000 Appliances & Fixtures........... $46,400 Trace the effects of the above events on the UCC for both asset classes through to the opening balance on January 1, 2020, and calculate the maximum 2020 CCA for each class assuming no further additions or dispositions. Question 7 On January 20, 2018, a personal residence which originally cost $280,000 was converted into a rental property. At this time, the property had a fair market value of $320,000. On June 1, 2020, the property was converted back to a personal residence, when the fair market value was $305,000. Advise on the amount of CCA that may be deducted for the years 2018 through 2020, inclusive, assuming that the building is the only asset in Class 1 and the provided amounts are for the building portion only