The fiscal year of Chen Lrd., a Canadian public company, ends on December 31 . Dn, January 1, 2020, the UCC balances for the various olasses of assets owned by the Company are as follows: 0 The following additions were made this year: 1. Dn September 15,2020 , a convertible is acquired at a cost of $68000 for use by the Vice President of the Company as apassenger vehicle. 2. Some new furniture was purchased at a cost of $14000. 3. Dn May 1, 2020, Chen Lid. pays $130000 to enter a franchise agreement. The life of the franchise is 15 years. 4. Dn November 3,2020,$164000 of class 53 manufacturing equipment was purchased. 5. Dr January 1, 2020, $45000 of leasehold improvements were made. 6. New computer hardware was purchased for $16000. The following disposals were made this year: 1. The photocopier in the separate class 8w as disposed of for $4000. It was originally purchased for $30,000. 2. Some old furniture was sold for proceeds of $7000. It was originally purchased for $11000. 3. Some computer hardware was sold for $6000. It was originally purchased on sale for $2000. 4. Some tools (from olass 12) were sold for proceeds of $9500. The original cost of these tools w as $12,000. Dther notes 8 information: 1. The Company leases a building for $15,000 per year that houses a portion of its manufacturing operations. The lease was negotiated on January 1, 2015 and has an original term of 10 years. There is one renew al option on the lease, for a period of two years. The company made $84,000 of leasehold improvements immediately after signing the lease. No further improvements were made until the current year. 2. It is the policy of the Company to deduct masimum CCA in all years. Bequired: Caloulate the maximum 2020 CCA that can be taken on each class of assets, the January 1, 2021 UCC balance for each class, and any other 2020 inclusions or deductions resulting from the information provided in the problem. Respond on the "P4- Response" tab. Final answers should be filled in the yellow bowes on the "answer summary" and the "effect on net income summary" in the "P4- Response" tab. You are required to show any additional work completed in the green space on the "P4- Response" tab in the excel dooument. 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. Where the answer is zeroil, do not write "Nil". Please write only 0 as a response where zeroil applies. Answer summary- enter your final answers in here- in the yellow boxes: 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) Total CCA taken Terminal loss Recapture Taxable capital gain Allowable capital loss Total Net income increase (decrease) \begin{tabular}{|r|l|} \hline 0.00 & Formualized-taken from chart above \\ \hline & \\ \hline 0.00 & Formualized (sum of above) \\ \hline Form & \\ \hline \hline \end{tabular} Show your work below (in the green- required for this question): The fiscal year of Chen Lrd., a Canadian public company, ends on December 31 . Dn, January 1, 2020, the UCC balances for the various olasses of assets owned by the Company are as follows: 0 The following additions were made this year: 1. Dn September 15,2020 , a convertible is acquired at a cost of $68000 for use by the Vice President of the Company as apassenger vehicle. 2. Some new furniture was purchased at a cost of $14000. 3. Dn May 1, 2020, Chen Lid. pays $130000 to enter a franchise agreement. The life of the franchise is 15 years. 4. Dn November 3,2020,$164000 of class 53 manufacturing equipment was purchased. 5. Dr January 1, 2020, $45000 of leasehold improvements were made. 6. New computer hardware was purchased for $16000. The following disposals were made this year: 1. The photocopier in the separate class 8w as disposed of for $4000. It was originally purchased for $30,000. 2. Some old furniture was sold for proceeds of $7000. It was originally purchased for $11000. 3. Some computer hardware was sold for $6000. It was originally purchased on sale for $2000. 4. Some tools (from olass 12) were sold for proceeds of $9500. The original cost of these tools w as $12,000. Dther notes 8 information: 1. The Company leases a building for $15,000 per year that houses a portion of its manufacturing operations. The lease was negotiated on January 1, 2015 and has an original term of 10 years. There is one renew al option on the lease, for a period of two years. The company made $84,000 of leasehold improvements immediately after signing the lease. No further improvements were made until the current year. 2. It is the policy of the Company to deduct masimum CCA in all years. Bequired: Caloulate the maximum 2020 CCA that can be taken on each class of assets, the January 1, 2021 UCC balance for each class, and any other 2020 inclusions or deductions resulting from the information provided in the problem. Respond on the "P4- Response" tab. Final answers should be filled in the yellow bowes on the "answer summary" and the "effect on net income summary" in the "P4- Response" tab. You are required to show any additional work completed in the green space on the "P4- Response" tab in the excel dooument. 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. Where the answer is zeroil, do not write "Nil". Please write only 0 as a response where zeroil applies. Answer summary- enter your final answers in here- in the yellow boxes: 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) Total CCA taken Terminal loss Recapture Taxable capital gain Allowable capital loss Total Net income increase (decrease) \begin{tabular}{|r|l|} \hline 0.00 & Formualized-taken from chart above \\ \hline & \\ \hline 0.00 & Formualized (sum of above) \\ \hline Form & \\ \hline \hline \end{tabular} Show your work below (in the green- required for this question)
