Software Solvers Ltd has determined that its Net Income For Tax Purposes, before any CCA deductions, was $83,000, for the taxation year ending December 31, 2018 As Software Solvers Ltd does not have any Division C deductions, Taxable Income before any deductions for CCA would also amount to $83,000 On January 1, 2018, Software Solvers Ltd had the following UCC balances Class 1 (Two Buildings) $ 500,000 Class 8 250,000 Class 10 140,000 Class 10 1 (Jaguar Cost $ 200,000) 24,000 Class 10 1 (Lexus Cost $ 220,000) 20,000 Class 12 60,000 Class 13 94,500 Class 14 1 (Pre January 01, 2017 Acquisition) 195,300 This balance reflects leasehold improvements made on January 1, 2016 at a total cost of $126,000 The original term of the lease was 4 years However, there are two available renewal options, each allowing Software Solvers Ltd to renew for a period of two years During 2018, the cost of additions to Class 8 amount to $50,000, while the proceeds from dispositions in this class totaled $20,000 In no case did the proceeds of disposition exceed the capital cost of the assets retired, and there were still assets in the class as of December 31, 2018 During 2018, the cost of additions to Class 10 amounted to $90,000, while the proceeds from dispositions in this class totalled $50,000 In no case did the proceeds of disposition exceed the capital cost of the assets disposed of, and there were still assets in the class as of December 31, 2018 The company plans to sell the Jaguar in January, 2019, and expects to receive about $90,000 All of the Class 12 assets were acquired in 2017 There were no acquisitions or dispositions in either Class 1 or Class 12 during 2018 Software Solvers Ltd has received an unsolicited offer to purchase one of its buildings which it is considering During the preceding 3 years, Software Solvers Ltd reported Taxable Income of $49,000 Required Calculate the maximum CCA that could be taken by Software Solvers Ltd for the taxation year ending December 31, 2018 Your answer should include the maximum that can be deducted for each CCA class As Software Solvers Ltd s tax advisor, indicate how much CCA you would advise the company to take for the 2018 taxation year, and the specific classes from which it should be deducted Provide a brief explanation of the reasons for your recommendations In determining your solution, ignore the possibility that 2018 losses can be carried forward to subsequent taxation years

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Software Solvers Ltd. has determined that its Net Income For Tax Purposes, before any CCA deductions, was $83,000, for the taxation year ending December 31,

Software Solvers Ltd. has determined that its Net Income For Tax Purposes, before any CCA deductions, was $83,000, for the taxation year ending December 31, 2018. As Software Solvers Ltd. does not have any Division C deductions, Taxable Income before any deductions for CCA would also amount to $83,000.

On January 1, 2018, Software Solvers Ltd. had the following UCC balances:

Class 1 (Two Buildings)	$ 500,000
Class 8	250,000
Class 10	140,000
Class 10.1 (Jaguar - Cost $ 200,000)	24,000
Class 10.1 (Lexus - Cost $ 220,000)	20,000
Class 12	60,000
Class 13*	94,500
Class 14.1 (Pre January 01, 2017 Acquisition)	195,300
* This balance reflects leasehold improvements made on January 1, 2016 at a total cost of $126,000. The original term of the lease was 4 years. However, there are two available renewal options, each allowing Software Solvers Ltd. to renew for a period of two years.

During 2018, the cost of additions to Class 8 amount to $50,000, while the proceeds from dispositions in this class totaled $20,000. In no case did the proceeds of disposition exceed the capital cost of the assets retired, and there were still assets in the class as of December 31, 2018.
During 2018, the cost of additions to Class 10 amounted to $90,000, while the proceeds from dispositions in this class totalled $50,000. In no case did the proceeds of disposition exceed the capital cost of the assets disposed of, and there were still assets in the class as of December 31, 2018.
The company plans to sell the Jaguar in January, 2019, and expects to receive about $90,000.
All of the Class 12 assets were acquired in 2017.
There were no acquisitions or dispositions in either Class 1 or Class 12 during 2018.
Software Solvers Ltd. has received an unsolicited offer to purchase one of its buildings which it is considering.

During the preceding 3 years, Software Solvers Ltd. reported Taxable Income of $49,000.

Required

Calculate the maximum CCA that could be taken by Software Solvers Ltd. for the taxation year ending December 31, 2018. Your answer should include the maximum that can be deducted for each CCA class.
As Software Solvers Ltd.s tax advisor, indicate how much CCA you would advise the company to take for the 2018 taxation year, and the specific classes from which it should be deducted. Provide a brief explanation of the reasons for your recommendations. In determining your solution, ignore the possibility that 2018 losses can be carried forward to subsequent taxation years.