Sunnyside Company has a December 31year end. In January 2021, the Company acquires seven floor cleaning machines at a cost of $15,000 each. Because of their extremely heavy usage, they must be replaced in December, 2021. They are replaced with seven new floor cleaning machines at a cost of $16,000 each. The Company received a trade in allowance of $2,000 for each of the replaced machines. Required Indicate the amount(s) that would be deducted from 2021 business income if no election is made to put each floor cleaning machine in a separate class. Contrast this with the deduction(s) that Yould be available if the separate class election is used. Floor cleaning machines would be Solution: Floor Cleaning Machines would be included in Class 8, a 20 percent declining balance class. The following table compares the CCA if no election is made with the results if the separate class With No Electio! Election First Purchase Dispositions Terminal Loss (2) (2) (1) E December Purchase Acell Adjustment (2) (2) CCA Base CCA For 2021 (2) (4) Sunnyside Company has a December 31year end. In January 2021, the Company acquires seven floor cleaning machines at a cost of $15,000 each. Because of their extremely heavy usage, they must be replaced in December, 2021. They are replaced with seven new floor cleaning machines at a cost of $16,000 each. The Company received a trade in allowance of $2,000 for each of the replaced machines. Required Indicate the amount(s) that would be deducted from 2021 business income if no election is made to put each floor cleaning machine in a separate class. Contrast this with the deduction(s) that Yould be available if the separate class election is used. Floor cleaning machines would be Solution: Floor Cleaning Machines would be included in Class 8, a 20 percent declining balance class. The following table compares the CCA if no election is made with the results if the separate class With No Electio! Election First Purchase Dispositions Terminal Loss (2) (2) (1) E December Purchase Acell Adjustment (2) (2) CCA Base CCA For 2021 (2) (4)