Question: In October 2003, JJ Ltd., purchased an asset for $50,000. The asset was sold in January 2005 for $30,000. A replacement asset was purchased for

In October 2003, JJ Ltd., purchased an asset for $50,000. The
asset was sold in January 2005 for $30,000. A replacement asset was

In October 2003, JJ Ltd., purchased an asset for $50,000. The asset was sold in January 2005 for $30,000. A replacement asset was purchased for $56,000 and it is now the only asset in the class. In 2007, the company sold the "new" asset in July for $34,000. The asset was not replaced and the asset class was closed. Assume that the firm has a December 31 year end, the applicable tax rate is 40% and the CCA rate is 20%. Required: (a) Calculate CCA claimed in each year from 2003 through 2007

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