VANCE ENTERPRISES CCA Problem

Vance Enterprises was incorporated in 1988. The Company closes its books on December 31 of each year and on January 1, 2020, the following information on depreciable assets was contained in its records:

Undepreciated Original

Type of Asset Class Capital Cost Capital Cost

Equipment 8 $ 2,100 $ 26,000

Building 1 205,000 250,000

Automobile 10 10,200 20,500

The building total original cost was $350,000, including $100,000 land cost

During the 2020 fiscal year, the following transactions occur:

Sale Of Equipment - As the result of an extensive analysis, it is decided that it would be better to sell the existing equipment and to replace it with improved equipment that will be leased. The equipment is sold for $21,000.

Sale Of Building the building is sold for $190,000 and replaced with leased premises.

Sale and Purchase of Automobile - The automobile is sold during the current year and replaced with a new truck. The sale proceeds for the automobile were $22,500, and the new truck cost $30,000

Leasehold Improvement: $100,000 improvement. The lease term for the Building was 5 years, with one renewal option for another 5 years.

Required: For the tax year ended December 31, 2020 calculate the CCA that can be deducted by the company and the ending UCC balances. Also, indicate any other tax consequences from the information given.

NB. Please provide answers with excel template and formulas