Question 1 Landis Ltd. began its corporate services business in 2010. Since then, it has acquired and disposed of various assets which are all in Class 8, and every year, the company has taken deductions under 20(1)(a) as permitted by law. Assume that Landis' 2021 opening UCC for its Class 8 assets was $160,000, and that in 2021, Landis acquired some new Class 8 assets, which cost $100,000 and also disposed of certain Class 8 assets, which had originally cost $100,000, for a price of $50,000. What is the maximum CCA claim for Landis in 2021? 

Question 2 Redo question 1 above, but assume instead that the acquisitions in 2021 were $50,000, and the disposals of the equipment with an original cost of $100,000 was at a price of: (i) $100,000 and (ii) $200,000 

Question 3 George Tannis started a new business on September 1, 2021, offering microchip design services. His first capital acquisition was a photocopier, which he purchased on December 1, 2021, for a total cost of $20,000. Advise George of the maximum CCA deduction that can be claimed in 2021 with respect to this equipment. 

Question 4 Elaine Beam owns an apartment building, which she holds for rental income. In November 2019, Elaine settled with municipal authorities on expropriation proceeds for the property, including the building. The agreed expropriation proceeds for the Class 1 building and the separate sale proceeds for the Class 8 appliances and fixtures are indicated in the following data: Since negotiations had been prolonged, Elaine was able to anticipate the approximate date of settlement and, as a result, in 2020, she was able to replace the expropriated assets. Replacement cost for the building and the cost of new appliances and fixtures were as follows: Class 1 Building...............................$1,276,000 Appliances & Fixtures...................... 46,400 Trace the effects of the above events on the UCC for both asset classes through to the opening balance on January 1, 2021 and calculate the maximum 2021 CCA for each class assuming no further additions or dispositions. 

Question 5 On January 20, 2019, a personal residence which originally cost $280,000 was converted into a rental property. At this time, the property had a fair market value of $320,000. On June 1, 2021, the property was converted back to a personal residence, when the fair market value was $305,000. Advise on the amount of CCA that may be deducted for the years 2019 through 2021, inclusive, assuming that the building is the only asset in Class 1 and the provided amounts are for the building portion only. 

Answer rating: 100% (QA)

These questions seem to involve calculations related to Canadian tax law particularly regarding Capi... View the full answer