Elaine Beam owns an apartment building, which she holds for rental income. In November 2018, Elaine...
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Elaine Beam owns an apartment building, which she holds for rental income. In November 2018, Elaine settled with municipal authorities on expropriation proceeds for the property, including the building. The agreed expropriation proceeds for the Class I building and the separate sale proceeds for the Class 8 appliances and fixtures are indicated in the following data: Expropriated Appliances Building & Fixtures Cost $406,000 $26,000 UCC, January 1, 2018 S188,500 $7,250 Proceeds S362,500 S2,600 Since negotiations had been prolonged, Elaine was able to anticipate the approximate date of settlement and, as a result, in 2019, she was able to replace the assets expropriated. Replacement cost for the building and the cost of new appliances and fixtures were as follows: Class 1 Building... $1,276,000 Appliances & Fixtures... S46,400 Trace the effects of the above events on the UCC for both asset classes through to the opening balance on January 1, 2020, and calculate the maximum 2020 CCA for each class assuming no further additions or dispositions. Elaine Beam owns an apartment building, which she holds for rental income. In November 2018, Elaine settled with municipal authorities on expropriation proceeds for the property, including the building. The agreed expropriation proceeds for the Class I building and the separate sale proceeds for the Class 8 appliances and fixtures are indicated in the following data: Expropriated Appliances Building & Fixtures Cost $406,000 $26,000 UCC, January 1, 2018 S188,500 $7,250 Proceeds S362,500 S2,600 Since negotiations had been prolonged, Elaine was able to anticipate the approximate date of settlement and, as a result, in 2019, she was able to replace the assets expropriated. Replacement cost for the building and the cost of new appliances and fixtures were as follows: Class 1 Building... $1,276,000 Appliances & Fixtures... S46,400 Trace the effects of the above events on the UCC for both asset classes through to the opening balance on January 1, 2020, and calculate the maximum 2020 CCA for each class assuming no further additions or dispositions.
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Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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