Question
Question -- Tax depreciation calculation (8 marks) Acme Ltd., with a taxation year that ends on December 31, 2019 has a Class 8 (20 percent)
Question -- Tax depreciation calculation (8 marks)
Acme Ltd., with a taxation year that ends on December 31, 2019 has a Class 8 (20 percent) UCC balance on January 1, 2019 of $1,000,000. During 2019, it acquires new office furniture at a cost of $350,000. The Company also disposes of office furniture for total proceeds of $120,000. In no case did the proceeds of disposition exceed the capital cost of the individual furniture items being disposed of.
REQUIRED: Determine the maximum Class 8 CCA that Acme Ltd. can deduct for 2019, as well as the January 1, 2020 UCC balance, assuming that maximum CCA is taken in 2019.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940
