Question: In the current year, Decrease Ltd. purchased class 8 equipment costing $20,000. Later in the year, Decrease Ltd. sold other class 8 equipment for $30,000.

In the current year, Decrease Ltd. purchased class 8 equipment costing $20,000. Later in the year, Decrease Ltd. sold other class 8 equipment for $30,000. The equipment sold originally cost $108,000.At the beginning of the current year, the class 8 UCC balance was $42,000.
Calculate the maximum CCA deduction for Class 8 for the current year. Income tax reference: ITA 13(21), 20(1)(a); Reg. 1100(1), (2).

Step by Step Solution

★★★★★

3.41 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

ITA 1321 201a Reg 110012 Disposals exc... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

691-L-B-L-I-T-E (688).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

In the current year, Harrisburg Corporation had net income of $35,000, a $9,000 decrease in accounts receivable, a $7,000 increase in inventory, an $8,000 increase in salaries payable, a $13,000...

For each of the following transactions, identify the item(s) that would appear on the statement of cash flows. Assume that the indirect method of presentation is used in the operating activities...

Greene Motors, Ltd. recently entered the auto-mobile industry by introducing its first fully electric vehicle, the Bolt. The Bolt is the first of many planned vehicles Greene will produce. In order...

3. On 31 March 2018, Royal Ltd purchased plant and equipment for R36 000 cash. In addition, The accountant of Royal Ltd has approached you to assist her with the preparation of the annual plant and...

The following list of balances is an extract from the trial balance of Still Sands Ltd on 30 June 2022: Land at cost (refer to note 1.2)...

The information given relates to an acquisition between two companies. You need to complete the accounting statement based on the given information. Background Information: Part A) Needs to complete...

36. Zeus Ltd owns 100% of the issued capital of Ares Ltd. On 1 July 2015, Zeus Ltd purchased an item of equipment from Ares Ltd for $800 000. Ares had owned the equipment for 2 years. It originally...

Closing Trial Balance 12/31/2015 Unadjusted Trial Balance 12/31/2016 DR CR DR CR Cash $28,355 $87,365 Accounts Receivable $81,350 $93,000 allowance doubtful accounts $5,000 $4,000 Prepaid Insurance...

QUESTION TWO Eric Ngidi the sole proprietor of a general dealer, Welcome Traders, provided you with the 1. Physical stocktake was done on 28 February 2023 and inventories were valued at cost as...

this question pls Question 2 May Ltd acquired 100 per cent of the shares of June Ltd for $50 000. At that date the equity of the two entities was as follows: May Ltd June Ltd Share capital (ordinary...

On July 31, 2017, Archer, Inc. reported the following information in the equity section of their balance sheet: Stockholders' Equity: Common Stock, $1.00 par, 500,000 shares authorized, 20,000 shares...

Staples and OfficeMax are two companies competing in the retail office supply business. OfficeMax had a net income of $91,721,000 for a recent year, while Staples had a net income of $973,577,000....

Which type of courtry riak produced by a govemmental system involves theeats or use of force or violence in order lis athain some kind of politcal paat? A . Boycott against a business B . Temorism C...

The Mexican government historically limits foreign ownership of firms in Mexico to 49%. This restriction was lifted by the North American Free Trade Agreement (NAFTA). Predict the effects on the...

In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of...

Egret Corporation, a calendar year C corporation, was formed on March 7, 2014, and opened for business on July 1, 2014. After its formation but prior to opening for business, Egret incurred the...

can someone calculate the t score and t cut off score for this A researcher is interested in infants' attention to their mothers' voices. The research wants to know if the infant's attention...

Danny Inc, is consider two projects that have the following cash flows: Project 1 Project 2 \ table [ [ Year , Cash Flow ] , [ , - $ 2 , 0 0 0

Consider the following three bond quotes: a Treasury note quoted at 97:22, a corporate bond quoted at 103.65, and a municipal bond quoted at 102.30. If the Treasury and corporate bonds have a par...