Required: calculate the maximum 2019 CCA that can be taken on each class of assets, the January 1, 2020 UCC balance for each class, and any other 2019 inclusions or deductions resulting from the information provided in the problem. respond on the excel response sheet.If you are unsure of something, please make an assumption and list your assumptions in the green space provided for each question, along with your supporting calculations.

Problem 3: Chapter 5 The fiscal year of Rockstar Ltd., a Canadian public company, ends on December 31. On January 1, 2019, the UCC balances for the various classes of assets owned by the Company are as follows: Class Asset UCC @ January 1, 2019 Class 1 (4%) Building 250,000 Class 8 Office furniture and equipment 80,000 Class 8 Photocopier 22,000 (separate) Class 10 Vehicles 125,000 Class 10.1 Passenger vehicles over $30,000- None 0 Class 12 Tools (Under $500 each) 7,000 Class 13 Leasehold improvements 52,500 Class 14 Intangible assets with limited life-none 0 Class 50 Computer hardware 20,000 The following additions were made this year. 1. On September 15, 2019, an Audi is acquired at a cost of $70,000 for use by the President of the Company as a passenger vehicle. 2. Some new furniture was purchased at a cost of $17,000. 3. On April 1, 2019, Rockstar Ltd. pays $100,000 to enter a franchise agreement. The life of the franchise is 12 years. 4. New computer hardware was purchased for $15,000. The following disposals were made this year: 1. The photocopier in the separate class 8 was disposed of for $5,000. It was originally purchased for $30,000. 2. Some old furniture was sold for proceeds of $8,000. It was originally purchased for $10,000 3. Some computer hardware was sold for $5,000. It was originally purchased on sale for $3,000. 4. Some tools (from class 12) were sold for total proceeds of $10,000. The original cost of these tools was $12,000. Other notes & information: 1. The Company leases a building for $15,000 per year that houses a portion of its operations. The lease was negotiated on January 1, 2014 and has an original term of 11 years. There are three renewal options on the lease. The term for each of these options is one year. The company made $84,000 of leasehold improvements immediately after signing the lease. No further improvements were made. 2. It is the policy of the Company to deduct maximum CCA in all years. 3. Recall that for all classes other than class 14, there is no daily proration of CCA required based on the date of purchase of an asset, even if it is mid-year. Proration of CCA is required for a short fiscal year. In this case, our fiscal year is 365 days from Jan 1 - Dec 31 so it is not a short fiscal year. Put all of your final answers in the answer summary (in yellow) and show all your work to get to these answers in the green space below. Answer summary- enter your final answers in here in the yellow boxes: 1 8 8 Separate 10 10.1 12 13 14 50 Class CCA Taken (enter as positive number) January 1, 2020 UCC Effect on net income summary: (Write zero beside any option where there is no effect. Enter deductions as a negative and income inclusions as a positive) 0.00 Formualized- taken from chart above Total CCA taken Terminal loss Recapture Taxable capital gain Allowable capital loss Total Net income increase (decrease) 0.00 Formualized (sum of above) Show your work below (in the green- required for this question): Problem 3: Chapter 5 The fiscal year of Rockstar Ltd., a Canadian public company, ends on December 31. On January 1, 2019, the UCC balances for the various classes of assets owned by the Company are as follows: Class Asset UCC @ January 1, 2019 Class 1 (4%) Building 250,000 Class 8 Office furniture and equipment 80,000 Class 8 Photocopier 22,000 (separate) Class 10 Vehicles 125,000 Class 10.1 Passenger vehicles over $30,000- None 0 Class 12 Tools (Under $500 each) 7,000 Class 13 Leasehold improvements 52,500 Class 14 Intangible assets with limited life-none 0 Class 50 Computer hardware 20,000 The following additions were made this year. 1. On September 15, 2019, an Audi is acquired at a cost of $70,000 for use by the President of the Company as a passenger vehicle. 2. Some new furniture was purchased at a cost of $17,000. 3. On April 1, 2019, Rockstar Ltd. pays $100,000 to enter a franchise agreement. The life of the franchise is 12 years. 4. New computer hardware was purchased for $15,000. The following disposals were made this year: 1. The photocopier in the separate class 8 was disposed of for $5,000. It was originally purchased for $30,000. 2. Some old furniture was sold for proceeds of $8,000. It was originally purchased for $10,000 3. Some computer hardware was sold for $5,000. It was originally purchased on sale for $3,000. 4. Some tools (from class 12) were sold for total proceeds of $10,000. The original cost of these tools was $12,000. Other notes & information: 1. The Company leases a building for $15,000 per year that houses a portion of its operations. The lease was negotiated on January 1, 2014 and has an original term of 11 years. There are three renewal options on the lease. The term for each of these options is one year. The company made $84,000 of leasehold improvements immediately after signing the lease. No further improvements were made. 2. It is the policy of the Company to deduct maximum CCA in all years. 3. Recall that for all classes other than class 14, there is no daily proration of CCA required based on the date of purchase of an asset, even if it is mid-year. Proration of CCA is required for a short fiscal year. In this case, our fiscal year is 365 days from Jan 1 - Dec 31 so it is not a short fiscal year. Put all of your final answers in the answer summary (in yellow) and show all your work to get to these answers in the green space below. Answer summary- enter your final answers in here in the yellow boxes: 1 8 8 Separate 10 10.1 12 13 14 50 Class CCA Taken (enter as positive number) January 1, 2020 UCC Effect on net income summary: (Write zero beside any option where there is no effect. Enter deductions as a negative and income inclusions as a positive) 0.00 Formualized- taken from chart above Total CCA taken Terminal loss Recapture Taxable capital gain Allowable capital loss Total Net income increase (decrease) 0.00 Formualized (sum of above) Show your work below (in the green- required for this question)