Taxation I

QUESTION 1

1. The information provided below is related to Class 8 assets for the current year 2020.

Undepreciated Capital Cost (UCC) beginning balance: $100,116

Cost of additions: $32,809

Dispositions (disposals): $12,300

Using this information, what is the maximum capital cost allowance (CCA) deduction for the Class 8 assets during 2020?

QUESTION 2

1. A1A is a proprietorship that has a calendar fiscal year. The proprietorship begins operations on April 1, 2020 and acquires a machine on December 1, 2020. The machine has a cost of $20,038 and A1A incurs an additional $5,268 in expenses for installation. The machine is a Class 8 asset . What is the maximum CCA deduction A1A can take on this asset for the April 1 to December 31, 2020 fiscal year (hint: assume 2020 was NOT a leap year)?