Class 13 The 2017 improvements are being written off over 10 years, the original term of...

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Class 13 The 2017 improvements are being written off over 10 years, the original term of the lease (8 years), plus the first renewal of two years. As the Company takes maximum CCA each year, the CCA taken in 2017 and 2018 must equal 15 percent [(10%)(1/2) + 10%] of the cost of the improvements. Given this, the January 1, 2019 UCC must equal 85 percent of the cost of the improvements. This indicates that the cost must have been $50,000 ($42,500 85%). Given this, the required information for this Class would be as follows: January 1, 2019 Balance Additions CCA Base CCA: $42,500 40,000 $82,500 2017 Improvements ($50,000 10) ($5,000) 2019 Improvements Including AccII Adjustment [(150%)($40,000 8)] (7,500) (12,500) January 1, 2020 UCC Balance $70,000 Item 5 - Class 13 The 2021 leasehold improvements are being written off over 10 years, the original term of the lease (8 years) plus the renewal option of 2 years. This means that the CCA rate for these improvements is 10%. Based on this and applying the Accll for the first year means that, during the 2021 and 2022 taxation years, 25% of the leasehold improvements' capital cost was claimed, leaving a balance of 75% (100% -25%) at the beginning of 2023. The original capital cost of the leasehold improvements was $136,000 ($102,000 .75). Based on this the required calculations would be as follows: January 1, 2023, UCC Balance $102,000 Additions CCA Base 52,000 $154,000 2023 CCA: 2021 ($136,000 10) ($13,600) 2023 Improvements Including Accll Adjustment [(150%) ($52,000) 8] (23,350) (9,750) January 1, 2024, UCC Balance $130,650 Class 13 The 2017 improvements are being written off over 10 years, the original term of the lease (8 years), plus the first renewal of two years. As the Company takes maximum CCA each year, the CCA taken in 2017 and 2018 must equal 15 percent [(10%)(1/2) + 10%] of the cost of the improvements. Given this, the January 1, 2019 UCC must equal 85 percent of the cost of the improvements. This indicates that the cost must have been $50,000 ($42,500 85%). Given this, the required information for this Class would be as follows: January 1, 2019 Balance Additions CCA Base CCA: $42,500 40,000 $82,500 2017 Improvements ($50,000 10) ($5,000) 2019 Improvements Including AccII Adjustment [(150%)($40,000 8)] (7,500) (12,500) January 1, 2020 UCC Balance $70,000 Item 5 - Class 13 The 2021 leasehold improvements are being written off over 10 years, the original term of the lease (8 years) plus the renewal option of 2 years. This means that the CCA rate for these improvements is 10%. Based on this and applying the Accll for the first year means that, during the 2021 and 2022 taxation years, 25% of the leasehold improvements' capital cost was claimed, leaving a balance of 75% (100% -25%) at the beginning of 2023. The original capital cost of the leasehold improvements was $136,000 ($102,000 .75). Based on this the required calculations would be as follows: January 1, 2023, UCC Balance $102,000 Additions CCA Base 52,000 $154,000 2023 CCA: 2021 ($136,000 10) ($13,600) 2023 Improvements Including Accll Adjustment [(150%) ($52,000) 8] (23,350) (9,750) January 1, 2024, UCC Balance $130,650