For each of the following independent scenarios, determine the upper and lower limit for the elected...
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For each of the following independent scenarios, determine the upper and lower limit for the elected transfer price. In addition, indicate the tax consequences for the transferor if the minimum elected transfer price is selected (i.e. the floor). a) CCA Class 8 assets with a FMV of $183,400, capital cost of $130,000 and UCC of $59,904 b) Inventories of merchandise with FMV of $120,000 and a cost of $87,000. c) Land with a FMV of $823,000 and cost of $617,000. d) Trucks with a FMV of $12,500, capital cost of $50,000 and UCC of $21,500. e) Land with a FMV of $112,000 and capital cost of $175,000 For each of the following independent scenarios, determine the upper and lower limit for the elected transfer price. In addition, indicate the tax consequences for the transferor if the minimum elected transfer price is selected (i.e. the floor). a) CCA Class 8 assets with a FMV of $183,400, capital cost of $130,000 and UCC of $59,904 b) Inventories of merchandise with FMV of $120,000 and a cost of $87,000. c) Land with a FMV of $823,000 and cost of $617,000. d) Trucks with a FMV of $12,500, capital cost of $50,000 and UCC of $21,500. e) Land with a FMV of $112,000 and capital cost of $175,000
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a The lower limit for the elected transfer price for CCA Class 8 assets is the UCC of 59904 The uppe... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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