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The assets and UCC balances for K Ltd. (a public corporation) are listed below: Asset UCC Balance, End of 2021 Class 1 (4%) building purchased

The assets and UCC balances for K Ltd. (a public corporation) are listed below:

Asset UCC Balance, End of 2021
Class 1 (4%) building purchased in 2010 $100,000
Class 10 Delivery van 15,000
Class 8 Furniture and office equipment 30,000
Separate Class 8 Photocopier purchased in 2020 2,000
Class 44 Patent (purchased in 2019) 10,000

The following transactions took place in 2022: a. K Ltd. purchased $2,000 worth of small tools (each costing under $500). b. The delivery van was sold for $12,000. The original cost was $20,000. A second-hand van was purchased in the year for $16,000. c. $15,000 was paid for an air conditioning system in the building, which was added to the cost of the standard Class 1 pool. d. K Ltd. sold the photocopier for $1,500 in the year and will replace it in January 2023 with a second-hand model valued at $1,700. e. The business acquired a Class 14 franchise on March 1st of 2022 for $55,000. The franchise has a limited legal life of 20 years. (Ignore leap year effects.) Required: A) Calculate the following: 1) The total CCA that K Ltd. will be able to claim in 2022. 2) Any recapture and/or terminal loss that occurred during the year. B) What would the tax effect have been for the original photocopier if K Ltd. had purchased the new photocopier during 2022?

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