Using Canadian Tax

Hunter Brown's Bargains began operations in $2022.$ All income in the company classifies as 'business income'. The following information was provided:

a$)$ Hunter signed an $8-$year lease for a building when the business began. The building is in an excellent location and is estimated to be worth $$500,000.$ Hunter has an option to renew the lease for an additional $2$ years. Hunter spent $$100,000$ in $2022$ on improvements to the leased building at the beginning of the year.

b$)$ Hunter purchased land and a building adjacent to his business for $$120,000$ in $2022.$ The building was valued at $$50,000,$ and is used as a storage facility. Hunter has chosen to take $4\%$ CCA on the building.

c$)$ Hunter purchased several small tools in $2022$ that are used to maintain the rental tools. The total cost of these tools was $$8,000,$ and each tool cost under $$500.$

d$)$ A delivery van costing a total of $$50,000$ was purchased in $2022,$ to be used solely in the business.

e$)$ Hunter furnished the business at a cost of $$30,000$ with Class $8$ assets.

f$)$ Acomputerwaspurchasedfortrackingsalesandinventory.Thecomputercost

$$1,000.$

g$)$ Incorporation costs for the business in $2022$ were $$5,000.$

h$)$ Hunter purchased a $$42,000$ passenger vehicle to be used for the business. In

$2022,$ the car was driven $20,000$ km$.15,000$ km were for business. $($The car was

to be used exclusively for business in the following years.$)$

i$)$ The business was very successful in the first year so Hunter chose to use all of

the CCA that was available in $2022.$

j$)$ Hunter's business is an HST registrant.

The following transactions occurred in $2023$:

k$)$ Hunter sold the delivery truck for $$48,000,$ and immediately purchased a newer and larger model for $$55,000.$

l$)$ New shelving was purchased for the reception area, at a cost of $$1,000.$ m$)$ Maximum CCA was claimed for the year.

Required:

Calculate the capital cost allowance per class claimed by the company in $2022$ and $2023.$ Complete using the CCA Schedule provided below

CAPITAL COST ALLOWANCE SCHEDULE

$($Column number$)$ Column Name

$(1)$Class

No$.$

$(2)$UCC

Beginning

of Year

$(3)$Additions

During Year

$(4)$Disposals

During Year

$(5)=(2)+(3)-(4)$Balance

$(6)1/2$Net

Positive Additions

$(7)=(5)+/(6)$Subject

to CCA

$(8)$Rate $\%$

$(9)=$ Rate $*(7)$CCA for

Year

$(10)=(5)-(9)$ UCC End

of Year