The fiscal year of Chen Ltd., a Canadian public company, ends on December 31. On January 1, 2023, the UCC balances for the various classes of assets owned by the Company are as follows:

The following additions were made this year: 1. On September 15, 2023, a convertible is acquired at a cost of $66000 for use by the Vice President of the Company as a passenger vehicle. 2. Some new furniture was purchased at a cost of $16500. 3. On May 1, 2023, Chen Ltd. pays $131000 to enter a franchise agreement. The life of the franchise is 15 years. 4. On November 3, 2023, $165000 of class 53 manufacturing equipment was purchased. 5. On January 1, 2023, $43000 of leasehold improvements were made. 6. New computer hardware was purchased for $16500.

The following disposals were made this year: 1. The photocopier in the separate class 8 was disposed of for $4250. It was original purchased for $30,000. 2. Some old furniture was sold for proceeds of $8750. It was originally purchased for $13500. 3. Some computer hardware was sold for $6500. It was originally purchased on sale for $2250. 4. Some tools (from class 12) were sold for proceeds of $9600. The original cost of these tools was $12,000.

Other notes & 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, 2018 and has an original term of 10 years. There is one renewal 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 maximum CCA in all years.

REQUIRED:

Calculate the maximum 2023 CCA that can be taken on each class of assets, the January 1, 2024 UCC balance for each class, and any other 2023 inclusions or deductions resulting from the information provided in the problem. You are required to show any and all work and calculations completed

RESPONSE SHEET:

\begin{tabular}{|l|l|r|} \hline Class & Asset & UCC @ January 1, 2023 \\ \hline Class 1 (4\%) & Building & 286000 \\ \hline Class 8 & Office furniture and equipment & 77000 \\ \hline Class 8 (separat & Photocopier & 19500 \\ \hline Class 10 & Vehicles & 122500 \\ \hline Class 10.1 & Passenger vehicles over \$36,000- No & 0 \\ \hline Class 12 & Tools (Under \$500 each) & 5750 \\ \hline Class 13 & Leasehold improvements & 52500 \\ \hline Class 14 & Intangible assets with limited life- & 0 \\ \hline Class 50 & Computer hardware & 19500 \\ \hline Class 53 & Manufacturing equipment & 80500 \\ \hline \end{tabular} Show your work below (in the green- required for this question)