Omar’s business purchased several pieces of machinery some time ago for $25,000. At the beginning of the current year, this pool of assets had a UCC of $15,000. During the year, Omar decided to sell all the assets from this pool. For each of the three sale prices below, determine if the firm will report a capital gain and calculate the amount (if any) of CCA recapture and/or terminal loss.
Answer to relevant QuestionsSuppose firms A and B have identical revenues and operating expenses, so that each has earnings before amortization and taxes of exactly $1 million. Both firms will report amortization of $200,000 on their public financial ...Tina’s Business Inc. bought machines some time ago for $30,000. She decided to sell all the assets from this pool at the end of this year. The pool of assets had a UCC of $5,000 before the sale, and the whole asset class ...Based on the figures in practice problems 17 and 18, how much money did the shareholders actually invest in the firm (i.e., what is the value of the capital stock)?GG Inc. just bought a computer for $2,000. It belongs to asset class 45 and has a CCA rate of 45 percent. Calculate the first-year and second-year CCA expenses. Finns’ Fridges is a company created by twin brothers David and Douglas Finn, who rented small refrigerators to other students in their college dormitory. Use the following statements to answer the questions about Finns’ ...
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